Foreign direct investments (FDI) recorded net inflows of $566 million in September 2019, 2.9 percent lower than the $582 million net inflows posted in the same period last year.
This was mainly due to the decline in non-residents’ net investments in debt instruments.
However, the reversal of net equity capital investments from net outflows to net inflows mitigated the decrease in net investments in debt instruments.
Net investments in debt instruments decreased by 36 percent to $395 million.
Meanwhile, non-residents’ net equity capital investments posted a 182 percent growth to $96 million as placements increased by 79.5 percent, while withdrawals declined by 84.8 percent.
Equity capital placements during the period were sourced largely from Japan, Taiwan, the United States, Hong Kong, and Netherlands.
Reinvestment of earnings declined by 9.4 percent to US$74 million from US$82 million in the same month last year.
On a cumulative basis, FDI for the first three quarters of 2019 recorded net inflows of $5.1 billion, 36.9 percent lower than the $8.1 billion net inflows registered last year.
The slowdown in inflows reflected the adverse effects of the prolonged trade disputes, which continued to affect global growth negatively and prompted foreign investors to hold off their investment plans in emerging markets including the Philippines, until global growth outlook improves.
The bulk of equity capital placements during the period emanated from Japan, the United States, Singapore, China, and South Korea.