Metro Manila (CNN Philippines, February 11) — Foreign direct investments to the Philippines shrank in November compared to the same period in 2019, the Bangko Sentral ng Pilipinas revealed on Wednesday.
FDI flows hit $537 million during the month, falling by 16.5% from November the year prior. Inflows netted $643 million in the same period in 2019.
The decline however was milder than the annual contraction in October, wherein investments from abroad plunged by 24.5%. This comes “amid news of positive developments in COVID-19 vaccines,” the BSP noted.
The country’s private sector was able to secure its initial multi-million doses of British-Swedish firm AstraZeneca’s coronavirus vaccine in November through a tripartite agreement. Earlier during the month, President Rodrigo Duterte also agreed to advance supply agreements and rendering of early payments to vaccine manufacturers.
Investments in equity capital gravely pulled FDIs down for the month, plunging by 57.3% to $66 million. This resulted from equity capital placements falling to $96 million, along with foreign investors withdrawing $30 million in equity capital.
Most investments came from the Netherlands, Japan and the United States and were made in the financial and insurance, real estate, and manufacturing industries.
Reinvested earnings likewise dropped by 36.5%, standing at $56 million in November.
Meanwhile, more foreign investors placed funds in debt instruments, which grew by 3.8% in November to $415 million.
Foreign investment inflows for January to November hit $5.8 billion, lower by 10.8% from the same timeframe in 2019 at $6.5 billion. Bulk of the investments came from Japan, the Netherlands, the US and Singapore during the period and were funneled into the aforementioned industries.
“The recent contractions in net FDI inflows were largely affected by concerns over the resurgence of COVID-19 cases and re-imposition of quarantine measures in some advanced and emerging markets,” the BSP explained.
