The country’s foreign direct investment (FDI) net inflows increased in February this year as the nonresidents’ net investments in equity capital grew, the latest data from the Bangko Sentral ng Pilipinas (BSP) showed.
Data released by the BSP showed that FDI net inflows during the month reached $1.4 billion, up by 29.3 percent from the $1.1 billion posted in February last year.
This development was due to the 927.3% expansion in nonresidents’ net investments in equity capital – other than reinvestment of earnings – to $764 million from $74 million in February 2023.
“The said growth in FDI inflows was tempered by the 41.5 percent contraction in nonresidents’ net investments in debt instruments to $533 million in February 2024 from $912 in February 2023,” BSP said in a statement.
“Similarly, reinvestment of earnings slightly declined by 3.8 percent to US$66 million from US$69 million,” it added.
During the reference month, bulk of the equity capital placements came from the Netherlands with investments directed mostly to the financial and insurance industry.
These developments brought the cumulative FDI net inflows in January-February 2024 to $2.3 billion, higher by 48.2 percent than the $1.5 billion net inflows recorded in January-February 2023.
“The growth in FDI reflects sustained investor confidence in the country’s macroeconomic fundamentals and resilience amid persistent inflationary pressures and global economic uncertainties,” BSP said. (TCSP)
