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June 23, 2024

Philippines books all-time high $10.5B net FDI inflow, $8B target breached

The Philippines booked a record foreign direct investments (FDIs) inflow last year after bouncing back strongly from a recession caused by the global health crisis.

Bangko Sentral ng Pilipinas Governor Benjamin Diokno said the net FDI inflow jumped by 54.2 percent to hit a record high of $10.5 billion in 2021 from $6.8 billion in 2020.

This eclipsed the previous all-time high of $10.3 billion recorded in 2017 as well as the $8 billion target set by the central bank’s Monetary Board for 2021.

“The growth in FDI reflected continued positive foreign investor sentiment on the country amid expectations of a rebound in domestic economic activity and declining COVID-19 reported cases, as well as the strengthening of the global economy,” Diokno said.

Data showed non-residents’ net investments in debt instruments jumped by 80.4 percent to $7.53 billion as foreign companies injected more funds to their affiliates in the country, while reinvestment of earnings increased by 34.7 percent to $1.27 billion.

Equity capital placements from Singapore, Japan, United States, and the Netherlands stood at $2.12 billion, while withdrawals inched up by 1.8 percent to $399 million.

For December alone, the country’s net FDI inflow jumped by 59 percent to $1.07 billion from $671 million in the same month last year.

The central bank forecasts a net FDI inflow of $8.5 billion for this year.