Foreign direct investments plummet by 38.2% in January 2019

Ralf Rivas
Foreign direct investments plummet by 38.2% in January 2019
The Bangko Sentral ng Pilipinas says the decline in foreign direct investments reflects the 65.3% drop in equity capital placements

MANILA, Philippines – Foreign direct investments (FDIs) posted net inflows of $609 million in January 2019, lower by 38.2% than the $986 million recorded in the same month last year.

The Bangko Sentral ng Pilipinas (BSP) said on Wednesday, April 10, that the decline in FDI inflows was due to the 65.3% drop in equity capital placements, hitting only $184 million in January from $531 million for the same month in 2018.

 

Equity capital placements were mainly from Mauritius, South Korea, the United States, Singapore, and the Netherlands.

Funds flowed in mostly to financial and insurance, administrative and support services, real estate, electricity, gas, steam and air conditioning supply, and information and communication industries.

Capital outflows reached $229 million from the $58 million in January 2018. Withdrawals were mainly from Japan.

FDIs are investments where foreign companies buy equity or actually set up shop in the country. Unlike portfolio investments, FDIs stick around longer and create more job opportunities for Filipinos.

In 2018, the government missed its FDI target, as it hit only $9.8 billion, $600 million short of the target. – Rappler.com

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Ralf Rivas

A sociologist by heart, a journalist by profession. Ralf is Rappler's business reporter, covering macroeconomy, government finance, companies, and agriculture.