Philippine FDI rebounds strong in April, highest in three months
By Derco Rosal
At A Glance
- Net inflows of brick-and-mortar foreign direct investment (FDI) into the Philippines increased to $610 million in April, the highest in three months, driven by larger investments in the manufacturing sector from Japan.
Manufacturing accounted for the largest share of investments in April at 47 percent—nearly half of the total. It was followed by financial and insurance activities and real estate, each receiving 16 percent, while the remaining 20 percent went to other industries.
Despite the positive trend in April FDI, net inflows for the first four months declined by 33.4 percent to $2.4 billion from the $3.6 billion recorded in the same period a year ago. This continued the decline in the first quarter.
Measured against the Philippines’ FDI target of $10 billion this year, the four-month total now stands at 24 percent. This year’s target is higher than last year’s $8.93 billion in attracted investments.
FDI refers to cross-border investments where a nonresident investor owns at least 10 percent equity in a local enterprise, and may take the form of equity capital, reinvested earnings, or intercompany borrowings.