Metro Manila (CNN Philippines, December 10) — Foreign direct investments (FDIs) in the Philippines soared annually in September, with the nine-month tally breaching the government’s forecast for the entire year, data from the Bangko Sentral ng Pilipinas published Friday showed.
FDI inflows during the month netted at $660 million, a 30.4% annual growth. However, it is the weakest performance in four months since the $448 million registered in May.
The latest outturn brought total investments from foreigners during the nine-month period to $7.28 billion, 43.8% higher than last year and surpassing the $7-billion full-year forecast of the BSP.
Equity other than reinvested earnings suffered in September, plunging by 67.4% to $32 million as withdrawals posted a triple-digit annual growth.
Debt instruments, considered the safe option by investors, rose from $336 million last year to $538 million during the month.
Reinvestment of earnings, meanwhile, climbed by 25.2% to $89 million in September.
Most equity capital placements came from Japan, the United States, Hong Kong, Indonesia and Singapore according to the central bank.
The BSP said these investments were primarily made in the manufacturing; real estate, professional, scientific and technical; and construction industries.
RCBC chief economist Michael Ricafort said the month-on-month slowdown of FDIs in September could be attributed to COVID-19 infections posting a record high during the month. Said to be driven by the Delta variant, the surge triggered tighter restrictions especially in the capital region.
“Better economic recovery prospects and increased infrastructure spending to pump-prime/stimulate the economy as well as part of preparations for the May 2022 elections also helped attract more FDIs,” said Ricafort.
