Foreign direct investments (FDIs) to the Philippines bucked regional trend in 2020 amid the new coronavirus pandemic.
The United Nations Conference on Trade and Development (UNCTAD) in its 38th Global Investment Trends Monitor showed
FDIs in the Philippines rose 29 percent in 2020 to $6.4 billion from 2019 while FDIs in Southeast Asia, an engine of FDI growth throughout the last decade, fell 31 percent to $107 billion
The report said this is due to the decline in investment to the largest recipients in the subregion.
Inflows in Singapore fell 37 percent to $58 billion; Indonesia fell 24 percent to $18 billion and Vietnam by 10 percent to $14 billion and Malaysia, by 68 percent to $2.5 billion.
The report said global FDI collapsed in 2020, falling by 42 percent to an estimated $859 billion from $1.5 trillion in 2019. FDI finished 2020 more than 30 percent below the trough after the global financial crisis in 2009 and back at a level last seen in the 1990s.
The decline was concentrated in developed countries, where FDI flows fell by 69 percent to an estimated $229 billion. The decline in developing economies was relatively measured at -12 percent to an estimated $616 billion. The share of developing economies in global FDI reached 72 percent – the highest share on record.
Looking ahead, the FDI trend is expected to remain weak in 2021. – Irma Isip