Foreign direct investments (FDI) recorded net inflows of $376 million in June, the Bangko Sentral ng Pilipinas (BSP) said, or down by 17.8 percent from the $457 million in June 2024.
FDIs include investment by a non-resident direct investor in a resident enterprise, whose equity capital in the latter is at least 10 percent, and investment made by a non-resident subsidiary or associate in its resident direct investor.
It can be in the form of equity capital, reinvestment of earnings, and borrowings.
The BSP said the slowdown in FDI net inflows during the month reflected the shift in non-residents’ net investments in equity capital from $85 million inflows to $57 million outflows.
This was, however, partly offset by a 36.7 percent increase in reinvestment of earnings, which amounted to $128 million from $94 million.
Non-residents’ net investments in debt instruments likewise grew by 9.3 percent, from $279 million to $305 million.
The BSP said Japan, the United States, and South Korea were the top sources of FDIs during the month.
Industries that received most of these investments were manufacturing, real estate, and wholesale and retail trade.
For the first half of the year, FDI net inflows amounted to $3.4 billion.
These mostly came from Japan, the US, Singapore, and South Korea.