Foreign direct investment (FDI) net inflows sustained its growth momentum in December 2021, increasing by 59.0 percent year-on-year to reach $1.1 billion from the $671 million net inflows in December 2020.
Data from the Bangko Sentral ng Pilipinas showed that this development brought the full-year 2021 FDI net inflows to a new record level of $10.5 billion, breaching the previous high of $10.3 billion in 2017.
The 2021 level represents a 54.2 percent increase from the $6.8 billion net inflows recorded in 2020.
The growth in FDI reflected continued positive foreign investor sentiment on the country amid expectations of a rebound in domestic economic activity and declining COVID-19 reported cases, as well as the strengthening of the global economy.
The cumulative net inflows rose on the back of the 80.4 percent expansion in non-residents’ net investments in debt instruments to $7.5 billion from $4.2 billion in 2020.
Likewise, reinvestment of earnings grew by 34.7 percent to $1.3 billion from $944 million.
Non-residents’ net investments in equity capital registered a moderate growth of 0.7 percent and settled at $1.7 billion.
Equity capital placements amounted to $2.1 billion, while withdrawals stood at $399 million. Equity capital placements originated mostly from Singapore, Japan, the United States, and the Netherlands.
Capital infusions were channeled mainly to the manufacturing; electricity, gas, steam, and air-conditioning; financial and insurance; and real estate industries.
The increase in the FDI net inflows in December 2021 was mainly due to the 60.0 percent growth in non-residents’ net investments in debt instruments to $634 million from $396 million in December 2020.
Similarly, non-residents’ net investments in equity capital registered a 59.5 percent upturn to $336 million from $211 million in the comparable month in 2020.
Equity capital placements during the month emanated largely from Singapore, Japan, and the Netherlands. These were directed mainly to the electricity, gas, steam, and air-conditioning; manufacturing; financial and insurance industries.
