MANILA, Oct. 12 (Xinhua): Foreign direct investment (FDI) net inflows into the Philippines sustained its growth momentum in July amid the Covid-19 pandemic, registering an increase of 35.2 per cent year-on-year to US$797 million from US$590 million in the same period last year, the Philippine central bank said on Monday.
"The FDI net inflows rose for the third consecutive month on the back of investors' improving sentiment due in part to easing of (COVID-19) containment measures, and some signs of gradual improvements in economic activity based on high-frequency indicators," Bangko Sentral ng Pilipinas (BSP) said in a statement.
The BSP said the growth in FDI net inflows in July was mainly on account of net investments in debt instruments, which rose by 60.1 per cent to US$643 million from US$402 million in July 2019.
Meanwhile, the BSP said net equity capital investments declined by 19.6 per cent to US$81 million in July from US$101 million a year ago.
"This was due primarily to lower equity placements of US$89 million vis-a-vis US$170 million in July 2019, but mitigated by a decline in withdrawals to US$8 million from US$69 million in July 2019," the BSP added.
The BSP said equity capital placements during the month came mostly from Japan, China, and the United States, and were channelled largely to the construction, real estate, wholesale and retail trade, and manufacturing industries.
Likewise, the BSP said reinvestment of earnings decreased by 16.1 per cent to US$73 million in July 2020 from US$87 million. - Reuters
"The FDI net inflows rose for the third consecutive month on the back of investors' improving sentiment due in part to easing of (COVID-19) containment measures, and some signs of gradual improvements in economic activity based on high-frequency indicators," Bangko Sentral ng Pilipinas (BSP) said in a statement.
The BSP said the growth in FDI net inflows in July was mainly on account of net investments in debt instruments, which rose by 60.1 per cent to US$643 million from US$402 million in July 2019.
Meanwhile, the BSP said net equity capital investments declined by 19.6 per cent to US$81 million in July from US$101 million a year ago.
"This was due primarily to lower equity placements of US$89 million vis-a-vis US$170 million in July 2019, but mitigated by a decline in withdrawals to US$8 million from US$69 million in July 2019," the BSP added.
The BSP said equity capital placements during the month came mostly from Japan, China, and the United States, and were channelled largely to the construction, real estate, wholesale and retail trade, and manufacturing industries.
Likewise, the BSP said reinvestment of earnings decreased by 16.1 per cent to US$73 million in July 2020 from US$87 million. - Reuters
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