Foreign investments down 18% in 6 months
Foreign direct investment inflows into the Philippines rebounded in June from a year earlier, but first-half inflows remained lower as foreign companies reduced lending to their local affiliates and reinvested less of their earnings.
The Philippines saw an 18% drop in foreign direct investment (FDI) inflows over the past six months, according to preliminary data from the Bangko Sentral ng Pilipinas (BSP). While June's FDI inflows rose by 35.1% to $447 million, compared to $331 million in June 2022, the first-half net FDI inflows fell by 17.8% to $3.38 billion.
This decline was largely due to a decrease in net equity outflows, which narrowed slightly from $57 million to $52 million, and a 43.1% increase in reinvested earnings, reaching $130 million. However, net debt investments and reinvested earnings both declined, with debt investments dropping by 25.8% to $2.06 billion and reinvested earnings falling by 19.4% to $829 million.
Despite these setbacks, the BSP noted that the longer-term outlook for FDI in the Philippines depends on the country's ability to convert reforms into actual investment projects.
Written by urgent.news from Philippine Star Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
