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FDI nearly doubled in October 2021

 

FOREIGN direct investment (FDI) net inflows almost doubled in October, the Bangko Sentral ng Pilipinas (BSP) reported on Monday.

In a statement, the central bank said the country’s FDI rose by 98.9 percent to $855 million in October from $430 million year-on-year.

BSP attributed the higher FDI net inflows in October to the 78.5 percent growth in non-residents’ net investments in debt instruments of $637 million from $357 million in October 2020.

Non-residents’ net investments in equity capital also improved to $141 million during the month from $1 million year-on-year.

“The notable expansion was due to the improvement in equity capital placements and the decline in equity capital withdrawals,” BSP explained.

The central bank said the equity capital placements during the month were sourced mainly from Japan, Singapore and the United States channeled to the manufacturing; electricity, gas, steam and air conditioning; and real estate industries.

Reinvestment of earnings for the month was 7.1 percent better to $77 million from $72 million.

The monthly rise also prompted the ten-month FDI net inflows to increase by 48.1 percent to $8.1 billion from $5.5 billion in January to October 2020.

BSP said the cumulative FDI net inflows were driven by the 78.6 percent year-on-year increase in non-residents’ net investments in debt instruments, which stood at $5.9 billion from $3.3 billion.

Reinvestment of earnings also added 11.9 percent from January to October to $942 million from $842 million in the same period in 2020.

Non-residents’ net investments in equity capital, on the other hand, stood at $1.3 billion during the period.

Meanwhile, the cumulative equity capital placements shed 3.6 percent to $1.6 billion from $1.7 billion, while withdrawals inched up by 2.3 percent to $351 million from $343 million.

BSP noted that equity capital placements during the period came from Singapore, Japan, the US and the Netherlands and were channeled to the manufacturing; electricity, gas, steam and air conditioning; financial and insurance; and real estate industries.

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