Foreign direct investments (FDI) posted US$307 million net inflows in July 2017, lower than the US$493 million net inflows recorded in the same month last year. 1, 2 This was mainly on account of the decline in investments in debt instruments to US$105 million from US$407 million, which outweighed the more than five-fold increase in net equity capital. The surge in net equity capital to US$131 million was due mainly to the increase in equity capital placements to US$170 million, which more than compensated for the withdrawals of US$39 million. Equity capital infusions in July came mostly from Singapore, the United States, the Netherlands, Japan and Taiwan. These were invested mainly in manufacturing; real estate; wholesale and retail trade; financial and insurance; and electricity, gas, steam and air conditioning supply activities. Meanwhile, reinvestment of earnings expanded by 11.5 percent to US$71 million during the month.

As a result of these developments, FDI net inflows reached US$3.9 billion in the first seven months of 2017, 16.5 percent lower than the US$4.7 billion net inflows last year. Net equity capital registered lower inflows at US$272 million from US$1.5 billion last year. Equity capital placements during the period emanated mainly from Singapore, the United States, Japan, Hong Kong and the Netherlands. These were infused largely in real estate; manufacturing; financial and insurance; electricity, gas, steam and air conditioning supply; and wholesale and retail trade activities. Investment in debt instruments increased by 13.9 percent to US$3.1 billion from US$2.8 billion last year. Reinvestment of earnings also expanded by 9.3 percent to US$487 million during the period.

Source: Bangko Sentral ng Pilipinas (BSP)