FDI records $1.2 billion net inflows in December; full-year level settles at $7.6 billion
March 10, 2020
Foreign direct investment (FDI) net inflows amounted to $1.2 billion in December 2019, 69 percent higher than the $683 million recorded in December 2018, the Bangko Sentral ng Pilipinas (BSP) said Tuesday.
This developed mainly on the account of the expansion in net equity capital investments, which reached $598 million, four times more than the $136 million posted in the same period in 2018.
Net equity capital investments increased as equity capital placements rose to $626 million (from $165 million).
Equity capital placements came mostly from Singapore, the Netherlands, Japan, and the United States. Said capital infusions were directed mainly to electricity, gas, steam and air-conditioning supply; and financial and insurance activities.
Net investments in debt instruments (consisting mainly of intercompany borrowing/lending between foreign direct investors and their subsidiaries/affiliates in the Philippines) decreased slightly to $484 million from $486 million in the same month in 2018.
Meanwhile, reinvestment of earnings grew by 17.2 percent to $71 million during the period.
For full year 2019, FDI recorded $7.6 billion net inflows, a 23.1 percent decrease from the $9.9 billion net inflows in 2018.
Notwithstanding the country's sound macroeconomic fundamentals, global uncertainties dampened investor sentiment during the year.
Net investments in debt instruments dropped by 23.2 percent to $5.2 billion. Similarly, net equity capital investments declined by 38.2 percent to $1.4 billion.
Gross equity capital investments for the year, which originated mainly fromSingapore, Japan, and the United States, were channeled mostly to financial and insurance, real estate, electricity, gas, steam and air-conditioning supply, and manufacturing industries. Reinvestment of earnings amounted to $1 billion in 2019. DMS
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