Connect with us

Hi, what are you looking for?

Economy

FDI net inflows slide in September

Net inflows of foreign direct investments shrank in September, after four straight months of double-digit annual growth. — PHILIPPINE STAR/MICHAEL VARCAS

FOREIGN DIRECT investments (FDI) to the Philippines slumped in September after four straight months of year-on-year growth, as uncertainty over the coronavirus disease pandemic weighed on investor sentiment.

Bangko Sentral ng Pilipinas (BSP) data showed net inflows of FDI stood at $523 million in September, dropping by 12.3% from $596 million in the same month in 2019. This was also 17% lower than the $637 million in FDI net inflows logged in August.

“The two-week Modified Enhanced Community Quarantine (MECQ) in Metro Manila and surrounding areas in the first half of August may have dampened investor sentiment on prospects of the economy’s re-opening,” the central bank said in a statement on Thursday.

To recall, Metro Manila and nearby provinces were once again placed under a MECQ to curb a sharp rise in COVID-19 infections.

FDI net inflows in the nine months to September was down 8.6% to $4.832 billion from $5.289 billion in the same period of 2019.

“The decline in FDI inflows reflected the worldwide cautious investment climate, following the continued effects of the prolonged COVID-19 health crisis on the global economic outlook,” the BSP said.

The central bank expects FDI inflows to reach $5.6 billion this year.

Under normal circumstances, the so-called “ber” months are “quite productive” periods for the economy, said John Paolo R. Rivera, an economist at the Asian Institute of Management.

“The decline in September reveals how slowly (but surely) the economy is moving again relative to other economies that are showing more stable and tangible recovery even in the short to medium run, thereby attracting more FDIs,” Mr. Rivera said in a Viber message.

In September, only equity other than reinvestment of earnings grew among FDI components, up  2.5% to $99 million from $96 million a year ago. Placements slipped 8.6% to $114 million and withdrawals plummeted 46.5% to $15 million.

The BSP said a big chunk of the placements came from Japan, the Netherlands, the US, and Singapore and were funneled into industries such as manufacturing, real estate, and financial and insurance businesses.

Meanwhile, reinvestment of earnings saw the largest drop as it slid 19.7% year on year to $62 million in September.

Net investments in debt instruments declined 14.3% to $362 million, while inflows that went into equity and investment fund shares also slipped 7.3% to $161 million.  Luz Wendy T. Noble

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

Economy

GROSS BORROWINGS by the National Government had reached P2.75 trillion as of end-October as it continued to raise money for its pandemic response, preliminary...

Economy

By Luz Wendy T. Noble, Reporter THE PHILIPPINE Statistics Authority (PSA) said the base year for the consumer price index (CPI) will change to...

Economy

SOME INDIAN COMPANIES, including those from the pharmaceutical industry, are interested in investing in economic zones in the Philippines, according to an India Business...

Economy

By Keren Concepcion G. Valmonte, Reporter HOSPITALITY GROUPS expect a rebound in tourism as coronavirus disease 2019 (COVID-19) vaccination rates continue to improve and...

Economy

BUSINESSWORLD’s Luz Wendy T. Noble was recognized as the Best Reporter of the Year for Banking at the 30th annual awards of the Economic...

Economy

THE Securities and Exchange Commission (SEC) has flagged eight more entities in separate advisories for their unregistered investment solicitation programs. These offerings are PH...

You May Also Like

Investing

Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...

Economy

Ivermectin, an existing drug against parasites including head lice, has had a checkered history when it comes to treating COVID-19. The bulk of studies...

Investing

As a traditionally rigid insurance industry becomes bogged down by antiquated processes and operations, a handful of industry leaders are seeking to shake things...

Investing

Insomnia is the most common sleep disorder in the global population. Therefore, it is a problem that many people suffer or have suffered throughout...

Disclaimer: SmartRetirementReport.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.