THE country’s foreign direct investment (FDI) in August declined by 19.2 percent on an annual basis to $797 million, the Central Bank said.
Data released by the Bangko Sentral ng Pilipinas showed that long-term investments made by foreign investors in August was $190 million lower than the $987 million recorded in the same month last year.
BSP also said FDI net inflow contracted 13 percent to $5.9 billion in the January to August 2022 period from the $6.8 billion posted in the same period last year.
“In August 2022, FDI net inflows decreased as all major FDI components posted lower net inflows, particularly non-residents’ net investments in debt instruments of their local affiliates,” the BSP said in a statement on Thursday.
In August, the data showed net debt instruments contracted 15.3 percent year-on-year to $600 million; reinvestment of earnings, 16.4 percent to $166 million; and net equity other than reinvestment of earnings fell 60.7 percent to $31 million.
The data for January to August also showed a similar trend. Net equity other than reinvestment of earnings contracted 17.1 percent to $907 million; net debt instruments, 13 percent to $4.155 billion; and reinvestment of earnings, 8 percent to $836 million.
The BSP also noted that equity capital infusions in August originated mainly from Japan and the United States with investments channeled largely to the manufacturing, real estate and information and communication industries.
Top country sources of FDIs in August were Japan and the United States while top sources in the eight-month period were Japan, US, Singapore, and Malaysia.
BSP said these FDIs were invested largely in manufacturing, real estate, and information and communication industries.
For August, some 42 percent of FDIs were poured into the manufacturing industry; 27 percent went to real estate; 19 percent went to other sectors; and 12 percent were invested in the information and communication industry.
In the January to August period, some 32 percent of investments were poured into the manufacturing sector; 22 percent for other industries; 21 percent went to real estate; 14 percent for construction; and 11 percent for financial and insurance industries.