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MANILA, Philippines – Foreign direct investments (FDIs) declined by 20% to $3.9 billion in the first half of 2023 as inflows hit a five-month low in June, latest figures of the Bangko Sentral ng Pilipinas (BSP) showed.
The BSP attributed the decline largely due to investor concerns over weak growth prospects and persistent global uncertainties.
Top sources of FDIs during the first semester were Japan, Germany, the United States, and Singapore.
FDIs were channeled mostly into manufacturing (54%), real estate (15%), and financial and insurance (10%).
Investments in debt instruments fell by 24% to $2.7 billion in the first semester from the $3.59 billion in the same period a year ago. Meanwhile, total reinvestment of earnings decreased by 11% to $459 million in the first two quarters of the year.
For June alone, net inflow of FDIs went down by 3.9% to $484 million, the lowest since January’s $465 million.
The BSP earlier lowered its projection for FDI net inflows for the entire 2023, from $11 billion to $9 billion. For 2024, the central bank expects FDIs to jump to $11 billion. – Rappler.com