Foreign direct investment (FDI) net inflows amounted to $753 million in July, higher by 35.7 percent than the $555 million recorded net inflows in the same month last year.

The growth in FDI was mainly on account of the 108.4 percent increase in nonresidents’ net investments in debt instruments (to $575 million from $276 million), which more than offset the decrease in nonresidents’ net investments in equity capital (other than reinvestment of earnings) by 52.6 percent (to $65 million from$137 million) and their reinvestment of earnings by 20.1 percent (to $114 million from $142 million).

By country of source, equity capital placements during the month came mostly from Japan, the United States, and Singapore. These investments were channeled primarily to the manufacturing; real estate; and financial and insurance industries.

Despite the expansion in the monthly FDI net inflows, cumulative net inflows for the period January-July settled at $4.7 billion, a decline of 14.7 percent from the $5.5 billion net inflows posted in the same period last year. BSP