Philippines’ foreign direct investment (FDI) net inflows took a hit as the global economic slowdown continued to take its toll.
The Bangko Sentral ng Pilipinas (BSP) reported a 23.2 percent decrease in net FDIs to $9.2 billion last year from $11.98 billion in 2021.
The BSP attributed the decline to the contraction in non-residents’ net investments in debt instruments and equity capital.
The FDI components consist of equity capital, reinvestment of earnings, and borrowings, with the BSP defining FDIs as the investments of a non-resident direct investor in a domestic enterprise with at least 10 percent equity capital and investments of a non-resident subsidiary in its resident direct investor.
The manufacturing sector received the largest share of FDIs, accounting for approximately 39 percent of the total, followed by the real estate sector with 17 percent, and the financial and insurance sector with 13 percent.
The information and communication sector and the construction sector received 9 percent and 8 percent of the total FDIs, respectively.
