FDI net inflows rise 33.7% in October 2019

FOREIGN direct investments (FDI) net inflows grew by 33.7 percent to US$672 million in October 2019 from the $502 million recorded during the same period in 2018, according to the Bangko Sentral ng Pilipinas.

This was mainly on account of the expansion in non-residents’ net investments in debt instruments issued by local affiliates (intercompany borrowings) by 60 percent to $534 million (from $334 million in 2018).

Meanwhile, net inflows of equity capital slowed down to $58 million (from US$98 million in October 2018), following the decline in equity capital placements (to $80 million from $112 million) coupled with the increase in withdrawals (to $22 million from $14 million).

Equity capital infusions during the month came mostly from the United States, South Korea and Japan. Placements during the period were invested largely in real estate, financial and insurance and manufacturing industries.

Reinvestment of earnings amounted to $79 million, 12.7 percent higher than the $71 million recorded in October 2018.

From January to October 2019, FDI net inflows reached $5.8 billion. This, however, was lower by 32.8 percent from the $8.6 billion posted in the same period in 2018.

The lower FDI net inflows reflected subdued investor sentiment due to the continued sluggish global economic activity. (PR)