FDIs hit 5-month high in June, surge 40.7% in H1 2021

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Metro Manila (CNN Philippines, September 10) — Foreign direct investment (FDI) inflows rose in the first half of 2021 amid higher debt instrument investments, the Bangko Sentral ng Pilipinas (BSP) said Friday.

In a statement, the central bank reported $833 million in FDIs in June - a 60.4% increase. The highest since January, this figure brought total inflows during the first semester of the year to $4.3 billion.

This represents a 40.7% growth from the $3.1 billion tallied from January to June 2020, the BSP said.

"The higher cumulative FDI net inflows was due mainly to the 86.5 percent growth in non-residents' net investments in debt instruments to US$2.8 billion from US$1.5 billion," it added.

Reinvested earnings also inched higher during the six-month period by 7.7% to $522 million.

Net investments in equity capital, however, fell to $971 million. This is an 8.9% decline from the same period last year.

These capital placements plunged 48.4% in June alone, according to the BSP, yielding $93 million in inflows. It attributed the decline to concerns over the feared Delta variant possibly prompting investors to "remain on the sidelines."

For the first half of 2021, the BSP said most investments came from Singapore, Japan and the United States. These were primarily channeled into manufacturing, financial and insurance, and electricity, gas, steam, and air-conditioning industries.