FDI inflows ease to 10-month low

The inflow of foreign direct investments (FDI) fell by 36.9 percent to $556 million in April from $881 million a year ago, marking the lowest level in 10 months, as global economic uncertainties dampened investor confidence.

- KEISHA TA-ASAN

Data from the Bangko Sentral ng Pilipinas (BSP) showed FDI contracted in April as nonresidents’ net investments in debt instruments decreased by nearly 39 percent to $407 million from $665 million in the same month in 2023.

Net investment in debt instruments consisted mainly of intercompany borrowings between foreign direct investors and their subsidiaries or affiliates in the country.

Data also showed that nonresidents’ net investments in equity capital (other than reinvestment of earnings) dropped by 48 percent to $68 million in April from $132 million a year ago.

Likewise, their reinvestment of earnings inched down by 4.2 percent to $81 million from $84 million in the same month last year.