NET foreign direct investments (FDI) hit a five-month high in July, the Bangko Sentral ng Pilipinas (BSP) reported on Thursday.
At $820 million, the net inflow was the highest since February’s $1.4 billion. It was also higher than the year-earlier $778 million and June’s $394 million.
“The improvement in FDI was driven by higher net inflows across all components,” the BSP said in a statement.
Year to date, net FDI was 7.5 percent up at $5.3 billion compared to the $4.9 billion seen in January-July 2023.
In particular, onresidents’ net investments in debt instruments rose by 2.7 percent in July to $610 million from $594 million.
Nonresidents’ reinvestments of earnings and net investments in equity capital respectively surged by 12.8 percent to $135 million and by 16.8 percent to $76 million from $120 million and $65 million.
The equity capital placements mostly came from Japan (73 percent), the United States (13 percent), and Singapore (8.0 percent), and were mostly channeled to manufacturing (71 percent) and real estate (17 percent).
Year to date, net equity capital placements ballooned to $1.27 billion from $804 million in the same period last year.
Reinvestments of earnings slightly declined to $648 million from $670 million while net investments in debt instruments edged down to $3.34 billion from $3.41 billion.
Equity capital placements for the seven-month period originated mostly from the United Kingdom (48 percent), Japan (34 percent) and the United States (7.0 percent)
The bulk or 76 percent went to the manufacturing sector, followed by real estate (10 percent) and others (13 percent).
Rizal Commercial Banking Corp. chief economist Michael Ricafort said the increase was due to lower policy rates and easing inflation.
“Investment commitments generated from overseas trips of the administration for more than a year already would help improve the FDI data going forward,” he added.
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