Investments in the manufacturing and real estate spaces helped push foreign direct investment (FDI) net inflows to a five-month high of $820 million in July this year, the Bangko Sentral ng Pilipinas (BSP) said.
"The bulk of the equity capital placements in July 2024 came from Japan, the United States, and Singapore. These investments were channeled mainly to the manufacturing and real estate industries," BSP data released on Thursday showed and added that FDI net inflows during the month went up by 5.5% from the $778 million net inflows recorded in July 2023.
It was also the highest recorded since the $1.3 billion in February this year.
FDIs include investments by nonresident direct investors in resident enterprises whose equity capital is at least 10% and investments made by nonresident subsidiaries or associates in their resident direct investors.
The BSP said an FDI can take the form of equity capital, reinvestment of earnings, or borrowings.
"Higher net inflows across all components drove the improvement in FDI," the BSP said.
In particular, nonresidents' net investments in debt instruments increased by 2.7% to $610 million from $594 million.
Nonresidents' earnings reinvestment and net equity capital investments (other than earnings reinvestment) also increased by 12.8% to $135 million from $120 million and 16.8% to $76 million from $65 million, respectively.
For January to July this year, FDI net inflows reached $5.3 billion, up 7.5% from $4.9 billion in the same period last year.
Top country sources include the United Kingdom, Japan, and the United States, and were channeled to manufacturing and real estate.
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