BSP: Foreign direct investments drop 40%

The inflow of foreign direct investments (FDI) fell by 40.5 percent to $494 million in August from $830 million in the same month last year, data from the Bangko Sentral ng Pilipinas (BSP) showed.

- By KEISHA TA-ASAN

This was the lowest inflow in two months or since the $376 million in June. It was also 61 percent lower than the one-year high of $1.27 billion in July.

The decline was driven largely by lower investments in debt instruments, which fell by 73.8 percent to $145 million from $553 million in the same month last year. Reinvestments of earnings also dipped slightly by 3.6 percent to $203 million from $210 million.

Meanwhile, equity capital placements surged by 53.2 percent to $158 million from $103 million a year ago, although withdrawals fell sharply by 66.2 percent to $13 million from $37 million. This brought total equity other than reinvested earnings to $146 million, more than double the $66 million posted in August 2024.

According to the BSP, most of the equity capital placements in August came from Japan, with the bulk channeled into the manufacturing sector.