FDIs to recover in 2021 after taking virus hit: BSP

ABS-CBN News

Posted at Jul 27 2020 10:24 AM

The Ortigas skyline seen from the junction in Pasig City. Mark Demayo, ABS-CBN News

MANILA - Bangko Sentral ng Pilipinas Governor Benjamin Diokno said Monday foreign direct investments could recover by 2021 after inflows shrank due to the coronavirus pandemic. 

Foreign direct investments could "go down" to $4.2 billion in 2020 from $7.6 billion the previous year, but it could recover to $6.6 billion by 2021 Diokno told ANC. 

"We’re very optimistic…there will be a lot of foreign investors coming," Diokno said. 

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Foreign direct investments registered net inflows of $311 million (P15.3 billion) in April, a 67.9 percent decline from $971 million the previous year, the BSP earlier said.

Diokno said the Philippines is past the "most difficult" quarter and is currently in the rebound stage. Gross domestic product contracted by 0.2 percent in the first quarter. 

Second quarter numbers, covering the longer period of the COVID-19 lockdowns, are set to be announced on Aug. 6.