Foreign Direct Investments Up

Foreign direct investment (FDI) sustained its net inflows in May 2022, recording a 64.1 percent expansion year-on-year to US$742 million from the US$452 million in May 2021, according to the Bangko Sentral ng Pilipinas.

Photo Insert: As the graph above shows, FDI net inflows for the period January-May 2022 rose by 18.8 percent to US$4.2 billion from the US$3.5 billion net inflows posted in the same period last year on a cumulative basis.

On a cumulative basis, FDI net inflows for the period January-May 2022 rose by 18.8 percent to US$4.2 billion from the US$3.5 billion net inflows posted in the same period last year.

The year-to-date growth was mainly on account of the increase in non-residents’ net investments in debt instruments, which muted the decline in net equity capital placements (other than reinvestment of earnings).

In May 2022, FDI grew following net inflows from non-residents’ net investments in debt instruments and equity capital of their local affiliates.

By country of source, equity capital placements came largely from Japan, the United States, Singapore, and the Netherlands. These were invested mostly in the 1) manufacturing; 2) real estate; 3) information and communication; and 4) transportation and storage industries.

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