Foreign direct investment (FDI) net inflows rose by 27.8 percent to reach $1.0 billion in November 2023 from the $820 million net inflows recorded in November 2022.
This improvement was due mainly to the 57.8 percent expansion in nonresidents’ net investments in debt instruments to $897 million from $568 million a year ago.
Meanwhile, nonresidents’ net investments in equity capital (other than reinvestment of earnings) and reinvestment of earnings contracted by 52.5 percent and 8.1 percent to $85 million from $180 million and $66 million from $72 million, respectively.
Equity capital placements during the reference month emanated largely from Japan and the United States.
These were channeled primarily to the manufacturing, real estate, and construction industries.
These developments brought the cumulative FDI net inflows to $7.6 billion in the first eleven months of 2023, albeit lower by 13.3 percent than the $8.7 billion net inflows recorded in the same period in 2022.
Notwithstanding the country’s sustained economic growth, FDI remained subdued due to the lingering impact of high inflation and low growth prospects globally.
