MANILA - Foreign direct investments to the Philippines reached $423 million net inflows in October, a 24.5-percent drop versus a month ago on increasing COVID-19 cases, the Bangko Sentral ng Pilipinas said on Friday.
"The slowdown in FDI during the month may be attributed in part to concerns over the resurgence of COVID-19 cases in the US, Japan, and some European countries," it said.
"[This] reflected the adverse impact on investor sentiment amid the uncertainties surrounding the effect of a prolonged pandemic on the global economy," the central bank added.
October FDI posted lower net inflows as net investments in debt instruments decreased 16.8 percent to $358 million, while net equity capital investments also plummeted 98.2 percent to $1 million.
The bulk of equity capital placements were from Japan, the Cayman Islands, and the United States, and invested mainly in manufacturing, real estate, and information and communication sectors.
January to October FDIs also posted $5.3-billion net inflows, down 10.2 percent from $5.3 billion in the same period in 2019, the central bank said.