Net FDI inflows in March down 55%, says BSP
Long-term foreign direct investments in March continued to fall short of record-breaking levels set last year, reflecting weak global economic conditions, data from the Bangko Sentral ng Pilipinas (BSP) showed on Wednesday.
Foreign direct investments (FDI) remained positive at the end of the first quarter. The year-on-year decline, however, showed the country’s inability to continue attracting substantial amounts of money from overseas due to infrastructure bottlenecks and persistent problems in the ease of doing business.
In March, FDI net inflows stood at $229 million, down 54.6 percent year-on-year. Net inflows refer to the difference in the amount of money that came in and the amount that went out of the Philippines during the month.
All types of FDIs declined in March, the BSP said, led by equity placements by foreigners in local companies.
Equity capital net inflows shrank to $50 million in March, down over 82.8 percent from last year’s $289 million. Main sources of new equity investments were the United States, Japan, Singapore, France, and Germany.
Industries that received the highest level of investments were real estate, electricity, manufacturing and financial services.
Advances by multinationals to their subsidiaries and affiliates in the Philippines stood at $123 million, down 17.8 percent year-on-year. Meanwhile, earnings reinvested in the Philippines by multinationals dipped 15.4 percent to $57 million.
