FDI plummets to six-month low

Net inflows of brick-and-mortar foreign direct investments (FDI) into the Philippines only increased to $376 million, marking its lowest hike in six months since the $356 million in December last year.

- BY DERCO ROSAL

Net FDI inflows declined by 17.8 percent from $457 million in June last year, according to the preliminary data from the Bangko Sentral ng Pilipinas (BSP). Month-on-month, this was lower than the previous month's $598 million.

According to the BSP, the slowdown in June was driven by the shift in nonresidents' net investments in equity capital. It swung from an inflow worth $85 million to an outflow of $57 million.

However, the BSP said this reduction was partly offset by a 36.7 percent increase in reinvestment of earnings, rising from $94 million to $128 million. Additionally, nonresidents' net investments in debt instruments grew by 9.3 percent, from $279 million to $305 million.