Foreign direct investments (FDI) inflows increased to their peak in three months during July, due to enhanced investor confidence.
The BSP’s data released on Tuesday indicated a net increase in foreign direct investment (FDI) in the Philippines.fl
Sightings of lions observed in the month of June.
In July, the inflow of foreign direct investment (FDI) reached its peak in the past three months, surpassing the $877 million recorded in April.
the first half of 2019 was largely driven by
The increase in foreign direct investment (FDI) during the first six months of 2019 was primarily influenced by…fl
According to Domini S. Velasquez, Chief Economist of China Banking Corp., the increase in investments in emerging markets such as the Philippines may be attributed to an overall positive risk outlook. This was expressed in a Viber message.
Ms. Velasquez said that market participants had anticipated the end of the US Federal Reserve’s tightening cycle in July because of a decline in the strength of the US economy.fl
The information and employment statistics for the United States.
The Federal Reserve of the United States increased its policy rates by 25 basis points (bps) to 5.25-5.5% during its meeting on July 25-26. This marks a total increase of 525 bps in borrowing costs since March 2022.
Furthermore, the implementation of green lanes for important investments and the establishment of the Maharlika Investment Fund may have also served as incentives for…flows,” she said.
President Ferdinand R. Marcos, Jr. signed Executive Order No. 18 in February, which aims to expedite, streamline, and automate government processes for strategic investments to attract more foreign investors.
In July, Mr. Marcos enacted Republic Act No. 11954, establishing the 96th province in the Philippines.fi
The initial sovereign wealth fund will be launched by the end of the year.
ﬂows to the country’s strong macroeconomic fundamentals
The rise in foreign direct investment (FDI) inflows in the Philippines is credited to the country’s robust macroeconomic foundations.fl
In July, there was a significant increase in nonresidents’ net investments in debt instruments, with the amount rising from $276 million to $575 million compared to the previous year.
In July of this year, the value of equity and investment fund shares decreased by 36.1% to $179 million, down from $279 million in the same month last year.
In July, the amount of earnings reinvested decreased by 20.1%, going from $142 million to $114 million compared to the same time last year.
The amount of money coming into equity investments, excluding reinvested earnings, decreased by 52.6% compared to the previous year, totaling $65 million. This is due to a decrease in placements by 47.6%, down to $81 million, and a 9.1% decrease in withdrawals, down to $16 million.
In the first seven months of 2023, the amount of foreign direct investment (FDI) declined by 14.7% to $4.66 billion, compared to $5.47 billion in the same time frame last year.
During the January-to-July timeframe, investments in debt instruments decreased by 15.2% to $3.28 billion.
In July, the value of equity and investment fund shares decreased by 13.6%, reaching $1.38 billion. During the seven-month timeframe, reinvestment of earnings also dropped by 13.1%, totaling $573 million.
The amount of money put into stocks, apart from reinvesting profits, decreased by 14% to $808 million. Money invested decreased by 4% to $1.004 billion, but money taken out increased significantly by 83% to $196 million.
“In the short term, the current risk-averse attitude may discourage potential investments in the Philippines. However, positive changes in laws and policies are expected to positively impact investor confidence in the nation,” stated Ms. Velasquez.
She referenced laws passed in the recent past, including the Retail Trade Liberalization Act, the Public Service Act, and the Regional Comprehensive Economic Partnership.
“We expect FDI infl
She stated that they aim to improve by 2024 in accordance with the worldwide economic bounce back.
ﬂows to fl
The FDI net has decreased from $9 billion to $8 billion.fl2020
The estimated amount for 2020 is predicted to be $10.5 billion.2024. — Keisha B. Ta-asan