FDI net inflows hit $876M in April —BSP

Foreign direct investments (FDI) into the Philippines posted a higher net inflow in April from the previous month but declined from year-ago level as investors were concerned over slowing economic growth and high inflation levels, the Bangko Sentral ng Pilipinas (BSP) reported on Monday.

Data released by the central bank showed that FDI net inflows stood at $876 million in April, higher than the $548 million in March, but 14.1% lower than the $1.020 billion recorded the same month last year.

“The decline in FDI may be attributed to concerns over slowing economic growth and relatively high inflation levels globally,” the BSP said in an accompanying statement.

Philippine economic growth slowed to 6.4% in the first quarter, its slowest footing since the country exited the COVID-19 pandemic-induced recession due to weak consumer spending.

Meanwhile, inflation clocked in at 5.4% in June, still above the government’s target range of 2.0% to 4.0%.

Net investments in debt instruments — which accounted for most of the country’s FDIs for the month — stood at $663 million, up from $389 million in March but 7.7% lower than the $719 million the previous year.

Net equity investments other than reinvestment of earnings were recorded at $136 million, reflecting an increase from $94 million the previous month but a steep drop of 33.8% from $206 million a year ago.

Most of the equity capital placements originated from Japan, the United States, and Singapore, which were then channeled into the manufacturing, real estate, and financial and insurance industries.

Year-to-date FDI net inflows hit $2.918 billion or 18.0% lower than the $3.561 billion recorded the same period last year.

This comes as the current administration — led by President Ferdinand “Bongbong” Marcos Jr. — has continued to conduct roadshows across the globe to entice more investments into the country.

Malacañang in December said Marcos’ foreign visits in 2022 alone have generated $23.6 billion in investment pledges. He has since visited more countries including the United States where $1.3-billion worth of pledges were reportedly secured. —KBK, GMA Integrated News