The growth of foreign direct investment (FDI) net inflows was sustained in February, posting a 29.3 percent increase year-on-year to reach $1.4 billion from the $1.1 billion net inflows in February 2023.

This development was due to the 927.3 percent expansion in nonresidents’ net investments in equity capital (other than reinvestment of earnings) to $764 million from $74 million in February 2023.

The growth in FDI inflows was tempered by the 41.5 percent contraction in nonresidents’ net investments in debt instruments to $533 million in February from $912 in February 2023. Similarly, reinvestment of earnings slightly declined by 3.8 percent to $66 million from $69 million.

Bulk of the equity capital placements during the reference month came from the Netherlands with investments directed mostly to the financial and insurance industry.

These developments brought the cumulative FDI net inflows in January-February to $2.3 billion, higher by 48.2 percent than the $1.5 billion net inflows recorded in January-February 2023. The growth in FDI reflects sustained investor confidence in the country’s macroeconomic fundamentals and resilience amid persistent inflationary pressures and global economic uncertainties. BSP