The Bangko Sentral ng Pilipinas (BSP) on Thursday reported foreign direct investment (FDI) net inflows in July reaching USD820 million.
This marked a 5.5 percent increase from FDI of only USD778 million recorded a year earlier.
This development is the kind encouraged by the government as the investments stay for the long haul and create jobs for Filipinos and tax revenue for the government.
According to the BSP, this development also reflects robust interest from foreign investors across various sectors.
Key growth drivers include a 2.7 percent rise in net investments in debt instruments, totaling USD610 million, compared to USD594 million last year.
Additionally, reinvested earnings surged by 12.8 percent to USD135 million, up from USD120 million, while net investments in equity capital, excluding reinvested earnings, posted a 16.8 percent jump to USD76 million versus only USD65 million in July last year.
The bulk of equity capital inflows during this period came from Japan, the United States, and Singapore, with investments primarily directed at the manufacturing and real estate sectors.
Cumulatively, FDI net inflows in the first seven months this year reached USD5.3 billion, 7.5 percent higher than only USD4.9 billion in the same period last year.
The steady growth signals confidence in the economy and highlights the country’s strategic positioning as an investment destination.
In July last year, FDI net inflows stood at USD778 million, with the manufacturing and services sectors attracting significant investment.
The BSP also reported seven-month FDI net inflows last year totaling US$4.9 billion that signaled a recovery amid global economic challenges.
In January 2022, FDI inflows had dipped to US$4.5 billion, prompting discussions on policy reforms to enhance the investment climate in the country.
The latest figures reinforce the overall government efforts to create a favorable environment for foreign investors, contributing to the country’s economic resilience and growth trajectory.
