In July 2023, the Philippines recorded foreign direct investment (FDI) net inflows of $753 million, marking a significant increase of 35.7% compared to the $555 million net inflows reported in the same month of the previous year. This growth in FDI can be primarily attributed to a substantial 108.4% surge in non-residents’ net investments in debt instruments, which reached $575 million, up from $276 million.
The origins of equity capital placements during this period were primarily from Japan, the United States, and Singapore. These investments were predominantly directed toward industries, with a notable focus on manufacturing, as stated by the Philippines’ central bank (BSP) in a press release.
Despite the positive expansion observed in the monthly FDI net inflows, the cumulative net inflows for the period spanning from January to July 2023 amounted to $4.7 billion. This figure represents a decline of 14.7% compared to the $5.5 billion net inflows recorded during the same period in the previous year. The decrease in FDI can be attributed to concerns regarding the deceleration of global economic growth.