COVID concerns drag FDI inflows in February

Foreign direct investments (FDIs) fell by over 30% in February due to uncertainties regarding the coronavirus disease 2019 (COVID-19), the Bangko Sentral ng Pilipinas (BSP) reported Thursday.

Data released by the central bank showed that the FDI fell by 31.5% to $505 million in February, down from $737 million net inflows the same month last year and $657 million in January.

"FDI declined as uncertainties on the impact of the COVID-19 outbreak dampened investor sentiment," the BSP said in an accompanying statement.

In particular, net investments in debt instruments fell 26.4% to $317 million from $431 million, while net placements dropped 43% to $129 million from $227 million.

Bulk of the equity capital placements during the period were sourced from Singapore, Japan, and the United States.

These were then channeled mainly to manufacturing, real estate, and wholesale and retail trade industries.

Year-to-date, FDI net inflows decreased 12.2% to $1.2 billion from $1.3 billion net inflows the same period last year.

The BSP attributed this mainly to the 44.1% drop in net investments in debt instruments to $550 million from $984 million and the 16% drop in reinvestment of earnings to $131 million from $156 million.

Net equity capital placements during the period grew 162% to $481 million from $184 million, mostly from the Netherlands, Singapore, Japan, and the United States.

These were then infused largely to the manufacturing, real estate, and wholesale and retail trade industries.—AOL, GMA News