FDI net inflows surge in February 2024

Foreign direct investments (FDI) experienced a significant surge in February this year, marking an 89.9 percent increase compared to the previous month.

Data unveiled by the Bangko Sentral ng Pilipinas (BSP) on Wednesday revealed that FDI net inflows reached USD907 million during the month, a substantial rise from the USD478 million recorded in January 2023.

FDIs encompass investments by non-resident direct investors in resident enterprises, where the equity capital in the latter constitutes at least 10 percent, as well as investments made by non-resident subsidiaries or associates in their resident direct investors.

The BSP emphasized that FDIs can take the form of equity capital, reinvestment of earnings, and borrowings.

"The notable increase in FDI was primarily driven by a 173.2 percent expansion in non-residents’ net investments in debt instruments, soaring to USD820 million from USD300 million in January 2023," stated the BSP.

Moreover, reinvestment of earnings witnessed a notable uptick, rising by 16.4 percent to USD99 million from USD85 million.

Japan and the United States emerged as the top sources of FDIs during the month, with investments predominantly directed towards manufacturing, real estate, construction, and wholesale and retail trade industries.