Philippines sees 29.3% growth in FDI net inflows in February

This development was due to the 927.3-per cent expansion in non-residents’ net investments in equity capital (other than reinvestment of earnings) to $764 million from $74 million in February 2023, the country’s central bank said in a release.

The FDI inflows growth was tempered by the 41.5-per cent contraction in non-residents’ net investments in debt instruments to $533 million in February 2024 from $912 in the same month last year.

Similarly, reinvestment of earnings declined slightly by 3.8 per cent to $66 million in the month from $69 million in the same month last year.

Bulk of the equity capital placements during the month came from the Netherlands, with investments directed mostly to the financial and insurance industry.

These developments brought the cumulative FDI net inflows in the first two months this year to $2.3 billion, higher by 48.2 per cent than the $1.5 billion net inflows recorded in the same months last year.

The growth in FDI reflects sustained investor confidence in the country’s macroeconomic fundamentals and resilience amid persistent inflationary pressures and global economic uncertainties, the central bank added.

Fibre2Fashion News Desk (DS)