FDIs down 23.1% in 2019

Foreign direct investments (FDIs) posted a double-digit drop in 2019 as investor sentiment was dampened by global uncertainty, the Bangko Sentral ng Pilipinas (BSP) reported Tuesday.

According to data released by the central bank, investments by foreign companies or individuals in the Philippines fell by 23.1% to $7.647 billion in 2019 from $9.949 billion the previous year.

"Notwithstanding the country's sound macroeconomic fundamentals, global uncertainties dampened investor sentiment during the year," the BSP said in an accompanying statement.

Net investments in debt instruments during the period fell by 23.2% to $5.2 billion, while net equity capital investments dropped by 38.2% to $1.4 billion.

Most of the investments for the year came mainly from Singapore, Japan, and the United States, and were mostly in financial and insurance, real estate, electricity, and manufacturing industries.

The year-on-year drop came even as FDIs posted net inflows of $1.153 billion in December, up by 69% from the same month in 2018.

"This developed mainly on the account of the expansion in net equity capital investments, which reached US$598 million, four times more than the US$136 million posted in the same period in 2018," said the BSP.

"Equity capital placements came mostly from Singapore, the Netherlands, Japan, and the United States," it added. — DVM, GMA News