Foreign direct investment (FDI) net inflows sustained its growth momentum in December 2023, increasing by 29.9 percent year-on-year to reach USD826 million from the USD636 million net inflows in December 2022.
FDI increased mainly on the back of the 86.2 percent growth in nonresidents’ net investments in debt instruments to USD527 million from USD283 million in the comparable month in 2022.
Similarly, reinvestment of earnings improved slightly by 4.1 percent to USD91 million from USD87 million. Meanwhile, nonresidents’ net investments in equity capital (other than reinvestment of earnings) declined by 21.7 percent to USD208 million in December 2023 from USD266 million a year ago.
The bulk of the equity capital placements during the month came from Japan with investments directed mostly to the manufacturing industry.
The full-year 2023 FDI net inflows reached USD8.9 billion, or a contraction of 6.6 percent, from the USD9.5 billion net inflows recorded in 2022.
Notwithstanding the country’s sound macroeconomic fundamentals, concerns over subdued global economic growth and geopolitical risks continued to weigh on investors’ investment plans.
