FDI posts $608-M net inflows in Feb
FOREIGN direct investment (FDI) net inflows amounted to $608 million in February 2021, 2.2 percent lower than the $621 million net inflows recorded in the same period last year.
This slight decline emanated mainly from the 88.3 percent drop in non-residents’ net investments in equity capital to $20 million in February 2021 (from $175 million in the same month a year ago) as equity capital placements decreased by 62.1 percent to $89 million in February 2021 (from $236 million), and withdrawals rose by 13.6 percent to $69 million (from $61 million).
Equity capital placements for the month were sourced primarily from Japan, the United States, the Netherlands, Malaysia, and Singapore. These were invested mainly to the manufacturing; real estate; wholesale and retail trade; financial and insurance; and electricity, gas, steam, and air-conditioning supply industries.
Meanwhile, the 36.1 percent increase in non-residents’ net investments in debt instruments to $515 million in February 2021 from $378 million in the same period last year tempered the decline in FDI.3 Reinvestment of earnings also rose by 6.1 percent to $72 million from $68 million in February 2020.
Notwithstanding the decline in February, FDI net inflows in the first two months of 2021 were higher by 20.6 percent at $1.6 billion compared with $1.3 billion net inflows reported in the comparable period in 2020. This was due mainly to the 67.7 percent expansion in non-residents’ net investments in debt instruments to US$1.1 billion from $626 million.
The AgriAgra Bill will strengthen rural development by providing a holistic approach in addressing the financing needs of the broader agricultural financing ecosystem.
BENJAMIN E. DIOKNO BSP Governor