Foreign direct investments (FDI) rose for the 2nd straight month, as the global economy gradually reopened after months of hard lockdowns due to the coronavirus pandemic.
FDI grew by 7.1% to $481 million in June 2020 from the $449 million in June 2019, latest data from the Bangko Sentral ng Pilipinas (BSP) showed.
"This positive development was underpinned by the gradual reopening of advanced economies with investment interest in the Philippines, and the country's sustained strong macroeconomic fundamentals, despite the COVID-19 pandemic," the BSP said.
Year-to-date, FDI net inflows' contraction eased to 18.3%. (READ: PEZA to investors: Please don't leave Philippines)
FDI are job-generating investments and have more impact on the domestic economy.
Equity capital placements were sourced primarily from Japan, the Netherlands, Singapore, and the United States. These were infused mainly into manufacturing, real estate, financial and insurance, and administrative and support service industries.
The BSP expects FDI to hit $4.1 billion in 2020, only around half of its initial target of over $8 billion. – Rappler.com