FOREIGN direct investments (FDIs) — a key source of jobs and capital for the local economy — saw a double-digit annual decline in August this year, data released by the Bangko Sentral ng Pilipinas (BSP) on Monday, November 10, showed.
Central bank data revealed that FDI net inflows stood at $494 million in August, reflecting a 40.5% drop from the $830 million the same month last year. It is also lower than the $1.268-billion net inflows in July.
Equity capital placements, excluding reinvestment of earnings, increased by 121.0% to $146 million from $66 million, while reinvestment of earnings fell by 3.6% to $203 million. Net debt instruments dropped by 73.8% to $145 million.
This brought the year-to-date FDI net inflows to $5.179 billion, down by 22.5% from the $6.686 billion recorded in the comparable period of 2024.
Equity capital placements for the eight-month period were recorded at $870 million, largely coming from Japan, the United States, Singapore, and South Korea. These were channeled mostly into manufacturing, wholesale and retail trade, and real estate. (GMA Integrated News)
