The country’s net foreign direct investment (FDI) inflows jumped 52.5 percent as of November last year to $9.24 billion from $6.06 billion in the same period in 2020.
“Behind this development was the 82.1 percent growth in non-residents’ net investments in debt instruments which climbed to $6.8 billion from $3.8 billion in the comparable period in 2020,” the Bangko Sentral ng Pilipinas (BSP) said Thursday, Feb. 10.
From January to November 2021, reinvestment of earnings increased by 12.8 percent to $1.02 billion from $907 million in 2020. The growth in FDIs, which are actual inflows, was “moderated by the marginal contraction” in non-residents’ net investments in equity capital other than reinvestment of earnings by 1.2 percent to $1.4 billion, said the BSP.
“Nonetheless, it was noted that the two consecutive monthly growth in net equity capital investments in October and November helped narrow the cumulative contraction of this account for the first 11 months of 2021 to a single digit from the double-digit declines posted during the period July-September 2021,” said the BSP.
A big portion of investors’ equity capital placements in the 11-month period came from Singapore, Japan, and the US. These were invested in the manufacturing sector, as well as financial and insurance, electricity, gas, steam, and air-conditioning, and real estate industries.
For the month of November only, net FDI grew by 96 percent year-on-year to $1.09 billion from $559 million.
“FDI net inflows in November 2021 rose on the back of the 109.3 percent upturn in non-residents’ net investments in debt instruments to $896 million from $428 million in the comparable month in 2020,” noted the BSP.
BSP data also showed that non-residents’ net investments in equity capital other than reinvestment of earnings also went up by 78.8 percent to $118 million from $66 million in November 2020.
Equity capital improved in November due to the increase in the placements which rose by 37.9 percent to $132 million from $96 million, coupled with the decrease in equity capital withdrawals by 52.8 percent to $14 million from $30 million, said the BSP.
For the full-year 2021, the BSP is projecting FDI net inflows of $8.5 billion. In 2020, FDI net inflows amounted to $6.54 billion.
The BSP’s reporting of FDI statistics is “distinct” from the investment data of other government sources since the central bank’s FDI covers actual investment inflows. FDIs as registered by the BSP are equity capital, reinvestment of earnings, and borrowings.