MANILA - Net inflows of foreign direct investments (FDI) grew 7.1 percent in June to $481 million compared to the same month last year, the Bangko Sentral ng Pilipinas said Tuesday.
The BSP said FDIs climbed as advanced economies with investment interests in the Philippines gradually reopened, and as the country sustained its strong macroeconomic fundamentals.
Net equity capital investments expanded in June to $173 million, with the bulk of the placements coming from Japan, the United Kingdom and the United States, the BSP said.
Most of the investments went to the manufacturing sector, followed by human health and social work, financial and insurance, and real estate.
Meanwhile, net investments in debt instruments dropped by 28.8 percent to $229 million from $321 million in June last year. Reinvestment of earnings was also lower by 19.4 percent at $80 million compared to $99 million a year ago, the BSP said.
Despite the growth in investments in June, FDIs are still down 18.3 percent in January to June period at just $3 billion. But this was still an improvement from the 21.9 percent decline seen from January to May.
BSP Governor Benjamin Diokno has said that FDI net inflows could fall to just $4.2 billion this year from $7.6 billion last year, as the coronavirus pandemic continues to disrupt economies.
Diokno however said he expects FDIs to bounce back to $6.6 billion in 2021.