End-July FDI down 16.5% to $3.904 billion

The net inflow of job-creating foreign direct investment (FDI) in the first seven months continued to fall behind a year ago levels, dropping 16.5 percent to $3.904 billion, the latest Bangko Sentral ng Pilipinas data released Tuesday showed.

In July alone, FDI declined by a faster 37.9 percent to $307 million from $493 million in the same month last year, as well as reversing the 182.7-percent year-on-year jump posted in June.

The July FDI figure was the lowest monthly inflow in 13 months, or since June last year’s $238 million, BSP data showed.

“This was mainly on account of the decline in investments in debt instruments to $105 million from $407 million, which outweighed the more than five-fold increase in net equity capital. The surge in net equity capital to $131 million was due mainly to the increase in equity capital placements to $170 million, which more than compensated for the withdrawals of $39 million,” the BSP said in explaining the July figure.

The drop in end-July FDI from a year ago’s $4.677 billion, meanwhile, was attributed by the BSP to lower inflows of net equity capital—at $272 million at the end of the first seven months, down from last year’s $1.5 billion.

Also, the $2.244-billion net FDI inflow registered in April last year was the largest-ever monthly figure, hence there was a high base from 2016.

In a statement Tuesday, the state planning agency National Economic and Development Authority claimed that despite the lower year-to-date FDI inflows, “foreign investors remain confident to do business in the Philippines.”