Monday 13 May 2024

Net FDI soars to $1.4B in February

Net FDI soars to $1.4B in February

Story by NiƱa Myka Pauline Arceo
Inquirer.net
13 May 2024

NET foreign direct investments (FDI) surged in February compared to a year earlier, the Bangko Sentral ng Pilipinas (BSP) reported late Friday.


At $1.4 billion, the net inflow was 29.3 percent higher than the $1.1 million recorded a year earlier.

This took the January-February tally

"The [year-to-date] growth in FDI reflects sustained investor confidence in the country's macroeconomic fundamentals and resilience amid persistent inflationary pressures and global economic uncertainties," the BSP said in a statement.

February's increase was said to be primarily due to a 927.3-percent increase in nonresidents' net investments in equity capital to $764 million from $74 million a year earlier.

The gain would have been higher had it not been offset by a 41.5-percent drop in net investments in debt instruments to $533 million from $912 million.

Reinvestments of earnings also dipped by 3.8 percent to $66 million from $69 million.

The Netherlands accounted for the bulk of FDI in February, which was mostly channeled to the financial and insurance (91 percent) and manufacturing (5.0 percent) industries.

For the first two months of 2024, net equity capital placements surged by 350.3 percent to $753 million from $167 million a year earlier.

Reinvestments of earnings rose to $165 million, up 7.4 percent from $154 million, while net investments in debt instruments increased by 11.6 percent to $1.4 billion from $1.2 billion.

Equity capital placements for the two-month period originated mostly from Japan and the Netherlands.

The bulk or 80 percent went to the financial and insurance sector, followed by manufacturing (8.0 percent), and real estate (4.0 percent).

Sought for comment, Rizal Commercial Banking Corp. chief economist Michael Ricafort said the improvement could be attributed to economic and financial markets gains in recent months.

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