In a statement, the BSP said this decrease was due mainly yo to a sharp 31.7% drop in net investments in equity capital from overseas, which fell to $161 million from $235 million in the same month last year.
The significant contraction in equity capital investments offset gains in other long term flow types, leading to an overall flat growth trajectory for foreign direct investments during the period.
Despite the downturn in May, cumulative foreign direct investment net inflows for the first five months of 2024 reached $4 billion, reflecting a 15.8% increase from $3.5 billion in the corresponding period of 2023.
This growth was driven by a 43.4% rise in foreign parties’ net investments in debt instruments, which amounted to $242 million in May 2024, up from $169 million a year earlier.
The equity capital investments in May were predominantly sourced from Japan, the United States, and Hong Kong, with the majority directed towards the manufacturing, real estate, and arts, entertainment, and recreation sectors.
However, the overall decline in equity investments highlights ongoing volatility in long term capital flows, the central bank said.
