This dip was largely attributed to a 21.6-percent decline in nonresidents’ net investments in debt instruments, which fell to $529 million from $675 million.
Reinvested earnings also saw a 9.4-percent decrease, reaching $217 million, down from $240 million in August 2023.
Despite this monthly decline, net FDI inflows for the January-August 2024 period rose to $6.1 billion, marking a 3.9-percent year-on-year growth from $5.8 billion during the same period in 2023.
The increase reflects strong equity capital placements, which surged by 83.6 percent to $66 million in August 2024, up from $36 million a year earlier.
These investments primarily originated from Japan and the United States, targeting sectors such as manufacturing, real estate, and electricity and gas.
The BSP data on these trends reflect mixed signals for the Philippines’ investment landscape.
While foreign companies' lending to their local subsidiaries is seeing constraints, there is notable interest in equity capital investments, especially from key partners. This highlights an ongoing diversification in foreign investment sources and the potential for sustained sectoral growth.
For the remainder of the year, analysts predict that FDI inflows may continue to fluctuate, influenced by global economic uncertainties and domestic policy developments.
Key FDI Data Highlights:
This FDI performance underscores the Philippines’ ongoing efforts to attract and retain foreign investments despite global and local economic pressures.
