Net foreign direct investment (FDI) flows increased for the third month in a row this year as more nonresidents invested in debt instruments, Bangko Sentral ng Pilipinas (BSP) said.
Data from the central bank released on Monday showed that the country’s FDI as of March 2024 reached $686 million, up 23.1 percent year-on-year from the $557 million net inflows in March 2023.
“The expansion in FDI net inflows was driven mainly by nonresidents’ net investments in debt instruments, which grew by 19.0 percent year-on-year to US$465 million from US$391 million in March 2023,” BSP said.
“Further, nonresidents’ net investments in equity capital (other than reinvestment of earnings) rose by 67.1 percent to $157 million from US$94 million,” BSP added.
However, the nonresidents’ reinvestment of earnings declined by 11.3 percent to $64 million in March 2024 from $72 million in March 2023.
Equity capital placements during the reference month were sourced primarily from Japan, Singapore, and the United States.
These were invested largely in the manufacturing, financial and insurance, and real estate industries.
Said developments brought the cumulative FDI net inflows to $3.0 billion in Q1 2024, a 42.1 percent growth from the $2.1 billion net inflows recorded in Q1 2023. FDI increased during the quarter on the back of the country’s strong growth prospects and moderating inflation. (TCSP)
