FDI net inflows into Philippines post growth for 3rd consecutive month in July
Source: Xinhua | 2020-10-13
Foreign direct investment (FDI) net inflows into the Philippines sustained its growth momentum in July amid the COVID-19 pandemic, registering an increase of 35.2 percent year-on-year to 797 million U.S. dollars from 590 million U.S. dollars in the same period last year, the Philippine central bank said on Monday.
"The FDI net inflows rose for the third consecutive month on the back of investors' improving sentiment due in part to easing of (COVID-19) containment measures, and some signs of gradual improvements in economic activity based on high-frequency indicators," Bangko Sentral ng Pilipinas (BSP) said in a statement.
The BSP said the growth in FDI net inflows in July was mainly on account of net investments in debt instruments, which rose by 60.1 percent to 643 million U.S. dollars from 402 million U.S. dollars in July 2019.
Meanwhile, the BSP said net equity capital investments declined by 19.6 percent to 81 million U.S. dollars in July from 101 million U.S. dollars a year ago.
"This was due primarily to lower equity placements of 89 million U.S. dollars vis-a-vis 170 million U.S. dollars in July 2019, but mitigated by a decline in withdrawals to 8 million U.S. dollars from 69 million U.S. dollars in July 2019," the BSP added.
The BSP said equity capital placements during the month came mostly from Japan, China, and the United States, and were channeled largely to the construction, real estate, wholesale and retail trade, and manufacturing industries.
Likewise, the BSP said reinvestment of earnings decreased by 16.1 percent to 73 million U.S. dollars in July 2020 from 87 million U.S. dollars last year.
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