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Foreign direct investment (FDI) registered US$797 million net inflows in August 2022, a decline of 19.2 percent from the US$987 million net inflows in same month last year.1, 2 On a cumulative basis, FDI net inflows for January-August 2022 amounted to US$5.9 billion, 13.0 percent lower than the US$6.8 million recorded in the comparable period in 2021. The slowdown in FDI may be attributed to concerns over weakening global growth prospects, particularly with the moderating demand and policy tightening in major economies (Figure 1).
In August 2022, FDI net inflows decreased as all major FDI components posted lower net inflows, particularly non-residents’ net investments in debt instruments of their local affiliates (Figure 2).
Equity capital placements during the month came mostly from Japan and the United States. Said investments were channeled largely to the 1) manufacturing; 2) real estate; and 3) information and communication industries.