Sumary of FDI net inflows soar in June:
- DESPITE concerns about the Covid-19 Delta variant, net inflows of foreign direct investments (FDIs) soared to a five-month high in June, according to the Bangko Sentral ng Pilipinas (BSP).
- Central bank figures released on Friday showed that net inflows increased by 60.4 percent to $833 million in the sixth month of 2021 compared to $519 million a year earlier.
- “FDI net inflows in June 2021 increased mainly on account of infusion by foreign direct investors to their subsidiaries/affiliates in the Philippines in the form of net investments in debt instruments, which rose year-on-year by 151.8 percent to $630 million,” the BSP pointed out.
- Meanwhile, nonresidents’ net equity capital investments fell by 48.4 percent to $93 million from $180 million the previous month last year.
- This was attributed by the Bangko Sentral to a decrease in equity capital placements, which plunged by 38.2 percent to $119 million from $192 million;
- and a growth in equity capital withdrawals, which picked up 112 percent to $26 million from $12 million.
- } The majority of equity capital placements during the month came from Japan, the United States and Singapore, and were primarily targeted at the manufacturing, real estate, and financial and insurance industries.
- , said the July FDI net inflows are largely due to the signing into law of Corporate Recovery and Tax Incentives for Enterprises Act on March 26 this year as well as measures to further reopen the economy.