Foreign direct investment (FDI) net inflows amounted to $634 million in December 2022, lower by 76.2 percent than the $2.7 billion net inflows in December 2021, the Bangko Sentral ng Pilipinas (BSP) said Froday.

The decline in FDI during the reference month was due largely to base effect, particularly given the significantly larger net placements of equity capital in December 2021

Non-residents’ net investments in debt instruments likewise declined in December 2022 while reinvestment of earnings remained broadly stable.

Bulk of the equity capital placements as sourced from Singapore, Germany, and Japan were channeled mostly to the manufacturing and real estate industries during the reference month.

Full-year FDI net inflows reached $9.2 billion in 2022, a contraction of 23.2 percent from the $12 billion net inflows recorded in 2021.

By component, non-residents’ net investments in debt instruments and equity capital dropped while reinvestment of earnings slightly increased. Notwithstanding the country’s sustained growth momentum, FDI net inflows decreased in 2022 due to the extended global slowdown and high inflation, which adversely affected investor decisions. BSP