Manila - Foreign direct investment (FDIs) net inflows in the Philippines increased by 29.3 percent in February, continuing a pattern of growth.
According to Philippine News Agency, FDI net inflows during the month totaled USD1.4 billion, rising from USD1.1 billion in February of the previous year. The substantial increase was largely attributed to a 927.3 percent surge in nonresidents' net investments in equity capital, reaching USD764 million up from USD74 million in February 2023. However, this growth was moderated by a 41.5 percent decline in nonresidents' net investments in debt instruments, which fell to USD533 million from USD912 million in the same month last year. Reinvestment of earnings also saw a slight decrease to USD66 million from USD69 million. The majority of equity capital investments originated from the Netherlands and were primarily directed towards the financial and insurance industry. In the first two months of the year, FDI net inflows climbed to USD2.3 billion, marking a 48.2 percent increase from USD1.5 billion recorded during the same period in the previous year. The sustained rise in FDIs reflects ongoing confidence in the P hilippine economy's fundamentals and resilience despite ongoing global economic challenges and inflationary pressures. The Netherlands and Japan were noted as the leading sources of FDIs during this period.