Tue Sep 10 16:38:00 UTC 2024: ## Philippine FDI Takes a Dip in June
**MANILA, PHILIPPINES -** Foreign direct investments (FDI) in the Philippines saw a significant drop in June, reaching a four-year low, according to the Bangko Sentral ng Pilipinas (BSP). The net inflow for June stood at $394 million, a substantial decrease compared to the $555 million recorded in the same month last year and the $499 million in May.
This decline was primarily attributed to higher global prices and interest rates, as explained by Rizal Commercial Banking Corp. chief economist Michael Ricafort. However, Ricafort remains optimistic about the future, believing that further rate cuts by the BSP and the Federal Reserve, coupled with easing inflation, will stimulate global investment in the coming months.
Despite the June slump, year-to-date net FDI still shows a 7.9 percent increase, reaching $4.4 billion compared to the $4.1 billion seen in the first half of 2023.
The June decline was driven by lower net inflows across all major FDI components. Nonresidents’ net investments in debt instruments plummeted by 30 percent, while net investments in equity capital saw an even steeper drop of 33.2 percent. Reinvestments of earnings also declined by 23.4 percent.
Despite this, equity capital placements saw a strong year-to-date increase, reaching $1.197 billion, compared to $739 million in the same period last year.
The BSP reported that the majority of equity capital placements came from Japan, the United States, Sweden, and Singapore, and were primarily channeled towards the manufacturing, real estate, wholesale and retail trade, and financial and insurance industries.
First Piper 