FDI inflow slows further in 2023

The net inflow of foreign direct investments FDI) fell for a second straight year in 2023, as investors were jittery with the global economic slowdown and geopolitical risks, the Bangko Sentral ng Pilipinas BSP) said yesterday.

- KEISHA TA-ASAN

FDI net inflow decreased by 6.6 percent to $8.86 billion in 2023, from $9.49 billion a year ago, according to data released by the BSP.

Despite the decline, the net inflow was slightly higher than the $8-billion target set by the BSP for last year.

“Notwithstanding the country’s sound macroeconomic fundamentals, concerns over subdued global economic growth and geopolitical risks continued to weigh on investors’ investment plans,” the BSP said.

The Philippine economy expanded by 5.6 percent last year, lower than the 7.6 percent in 2022 and the government’s six to seven percent target. Still, the Philippines emerged as one of the fastest-growing economies in the region.

For this year, the Development Budget Coordination Committee is expecting economic growth to rebound to between 6.5 and 7.5 percent.