For the fifth straight month ending October 2021, net inflows of foreign direct investments (FDIs) rose in the Philippines. Recent data from the Bangko Sentral ng Pilipinas showed a 98.9% growth rate from $430 million in the past year to $855 million to date.
Despite the global health crisis affecting the economy, promising results were registered by various industries as a total of $8.1 billion net inflow was accumulated, implying a 48.1% growth of FDI net inflows for the first 10 months of 2021, higher than 2020’s $5.5 billion net inflow.
“Cumulative FDI net inflows rose on the back of the 78.6% increase in nonresidents’ net investments in debt instruments to $5.9 billion from $3.3 billion in the same period in 2020,” the BSP stated.
Reinvestment of earnings hit $942 million, demonstrating an 11.9% growth from the past annual record of $842 million in January to October 2020. Nonresidents’ net investments in equity capital, on the other hand, maintained stability at $1.3 billion.
While withdrawals increased by 2.3% from $343 million to $351 million, cumulative equity capital placements decreased slightly by 3.6% from $1.7 billion to $1.6 billion.
Fortunately, reinvestment earnings have increased by 7.1% from $72 million to $77 million. Japan, Singapore, the Netherlands, and the United States serve as the equity capital placement providers for manufacturing electricity, gas, steam, and air-conditioning; financial and insurance; and real estate industries.
Additionally, an overall total of $6.1 billion FDI net inflow was collected in 2020, showing decent income investments even with the pandemic. With the improving global economic status amid COVID-19, the BSP decided to raise the 2021 FDI net inflow target to $8 billion, expecting positive results based on the past months’ inflow.
Late 2021’s net inflow investments are paving the way for industries by providing resources for 2022’s projects. The total budget allocated from foreign investors will create opportunities for businesses to improve PropTech services and goods in the Philippines. For more industry news and updates, visit the Enta blog page.