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Foreign direct investment (FDI) continued to post net inflows amounting to US$471 million in June 2022, although lower by 51.5 percent than the US$971 million net inflows in June 2021.1,2 On a year-to-date basis, FDI net inflows for the first half of the year reached US$4.6 billion, higher by 3.1 percent than the US$4.5 billion net inflows recorded in the comparable period in 2021 (Figure 1). Said cumulative growth was due to the expansion in non-residents’ net investments in debt instruments, which more than offset the decrease in their net placements of equity capital (other than reinvestment of earnings).
In June 2022, FDI net inflows declined following the drop in non-residents’ net investments in debt instruments of their local affiliates due to higher repayments during the month. This muted the increase in their net investments in equity capital and reinvestment of earnings (Figure 2).
Equity capital placements during the month were sourced mostly from Japan, the United States, Singapore, and Switzerland. Investments were channeled mainly to the 1) manufacturing; 2) real estate; and 3) information and communication industries.