Foreign direct investments drop by 48.5% in June 2019
MANILA, Philippines – Foreign direct investments (FDIs) registered net inflows in June, but were 48.5% lower than the same month last year, according to the Bangko Sentral ng Pilipinas (BSP).
The BSP said on Tuesday, September 10, that FDIs in June reached $430 million, just a little over half of the $836 million posted in the same month last year.
The figure is 78% higher than the $242 million recorded in May.
Equity capital placements during the period came mostly from Singapore, the United States, Japan, the Netherlands, and China.
These investments were channeled mainly to real estate; manufacturing; financial and insurance; electricity, gas, steam, and air-conditioning supplies; and transportation and storage.
From January to June, FDIs recorded inflows of $3.6 billion, 38.8% lower than the $5.8 billion recorded during the 1st half of 2018. (READ: [ANALYSIS] The real score on foreign direct investments)
The BSP said this was due to a 50.8% decline in equity capital investments. Withdrawals also increased by 206.6% to $499 million from $163 million.
Equity capital placements during the 6-month period were sourced largely from Japan, the US, Singapore, China, and South Korea.
The industries that benefited from the capital infusions were financial and insurance; real estate; manufacturing; transportation and storage; and administrative and support services.
FDIs are investments made by foreign companies or individuals in the Philippines. These are more coveted than portfolio investments, as FDIs provide more jobs and their impact lingers more in the economy. – Rappler.com