Foreign investments drop in July to 1-year low
Things didn’t look so good for foreigners back in July.
Foreign direct investments (FDI) recorded a $307 million inflow in July, which is down 37.9% from the $493 million that entered the country last year, according to the Bangko Sentral ng Pilipinas.
It is also just half the $674 million investments that came in June, and marked the lowest monthly tally since June 2016.
Foreign investors decided to cut their holdings of debt instruments to just $105 million, which is roughly only 25% of the $407 million they placed in July 2016. Equity investments climbed by nearly six times to $131 million, but was not enough to offset the lower debt placements.
Investors from Singapore, the United States, the Netherlands, Japan and Taiwan were those who made big bets in July, mainly in manufacturing; real estate; wholesale and retail trade; financial and insurance; and electricity, gas, steam and air conditioning supply activities.
As a result, FDIs totaled $3.9 billion as of July, down 16.5% from the $4.7 billion recorded during the first seven months of 2016.