The Philippines's foreign direct investment (FDI) net inflows rose 29.3% in February compared to the same period last year, according to data from the Bangko Sentral ng Pilipinas (BSP).
The BSP attributed the surge to the 927.3 percent expansion in nonresidents' net equity capital investments (other than earnings reinvestment) to $764 million from $74 million in February 2023.
"The said growth in FDI inflows was tempered by the 41.5% contraction in nonresidents' net investments in debt instruments to $533 million in February 2024 from $912 in February 2023.3 Similarly, reinvestment of earnings slightly declined by 3.8 percent to $66 million from $69 million," the BSP said in a statement.
The bulk of the equity capital placements during the reference month came from the Netherlands, with investments mainly directed to the financial and insurance industry.
These developments brought the cumulative FDI net inflows in January-February 2024 to $2.3 billion, 48.2 percent higher than the $1.5 billion net inflows recorded in January-February 2023. The growth in FDI reflects sustained investor confidence in the country's macroeconomic fundamentals and resilience amid persistent inflationary pressures and global economic uncertainties.
Reinvestment of earnings also slightly declined to $66 million from $69 million.
FDIs include investment by a nonresident direct investor in a resident enterprise, whose equity capital in the latter is at least 10 percent, and investment made by a nonresident subsidiary or associate in its resident direct investor.
The FDI could be in the form of equity capital, reinvestment of earnings, and borrowings.
For the first two months of the year, FDI net inflows amounted to $2.3 billion, up by 48.2 percent from the $1.5 billion recorded in the same period last year.
"The growth in FDI reflects sustained investor confidence in the country's macroeconomic fundamentals and resilience amid persistent inflationary pressures and global economic uncertainties," the BSP said.
The Netherlands and Japan were the top sources of FDIs during the period.
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