Long-term capital flows into PH rose for third straight month in March

The Philippines recorded its third consecutive month of increased foreign direct investments (FDI) net inflows in March 2024, with a significant year-on-year growth of 23.1%, reaching $686 million from $557 million in March of the previous year.

In a statement, the Bangko Sentral ng Pilipinas attributed this surge to a 19% rise in foreigners’ investments in debt instruments, which totaled $465 million.

Additionally, these foreign asset managers net investments in company equity, excluding reinvestment of earnings, surged by 67.1% to $157 million.

Despite a slight decline in reinvestment of earnings by 11.3%, equity capital placements from Japan, Singapore, and the United States continued to bolster the manufacturing, financial and insurance, and real estate sectors, the central bank said.

Consequently, the cumulative FDI net inflows for the first quarter of 2024 rose to $3 billion, marking a 42.1% increase from the previous year.

This growth reflects the country's robust economic prospects and moderating inflation, the BSP said.