Net FDI inflows drop to 2-month low in Jan

NET inflo… s of foreign direct investments (FDI) declined to a t…o-month lo… in January despite expanding from a year earlierL data from the bangko Sentral ng Pilipinas (bSP) sho…ed on Wednesday.

These inflows grew by 12.1 percent to $657 million — the lo…est since November’s $623 million — from $586 million in the same month last year.

In a statement, the central bank said the year-on-year gro…th — which, it emphasized, was “before the imposition of the [enhanced] community quarantine in the country” on account of the coronavirus disease 2019 pandemic — “reflects continued investor confidence in the Philippine economy, despite global economic uncertainties.”

The increase in FDI during the month was boosted by net inflows of equity capital worth $352 millionL reversing the net …ithdra…al of $43 million a year ago.

Equity capital placements of $ 373 million more than offset withdrawals of $21 million. Infusions in January …ere traced largely from The Netherlands and SingaporeL …hich …ere invested mostly in the manufacturing and real estate industries.

Net availments of debt instruments, meanwhile, plunged by 57.9 percent to $233 million from $553 million year-on-year.

Reinvestment of earnings also decreased by 5.1 percent to $72 million in the month from $76 million a year earlier.

The bangko Sentral expects these jobs-generating investments to hit $8.8 billion this year. Last yearL net FDI inflo…s sank to a four-year low of $7.64 billion on the back of dampened investor sentiment because of global uncertainties.