MANILA - The Philippines booked a net inflow of $797 million in foreign direct investments (FDI) in July, which was 35.2 percent higher compared to the same month last year, the Bangko Sentral ng Pilipinas said on Monday.
This was the third consecutive month that the country's FDI net inflows grew, as investor sentiment improved partly due to the easing of quarantine measures and improvements in economic activity, the BSP said.
The central bank said the growth in FDI net inflows in July further mitigated the year-to-date decline for the first seven months of the year to 10.9 percent from the 18.3 percent cumulative contraction in the January to June period.
"The growth in FDI net inflows in July 2020 was mainly on account of net investments in debt instruments, which rose by 60.1 percent to $643 million from $402 million in July 2019," the central bank said.
Net equity capital investments, however, declined by 19.6 percent to $81 million in July from $101 million a year ago. Reinvestment of earnings decreased by 16.1 percent to $73 million in July 2020 from $87 million last year.
Equity capital placements during the month came mostly from Japan, China, and the United States.