Foreign direct investment (FDI) net inflows reached $488 million in May, albeit 34 percent lower than the $739 million net inflows posted in May 2022.

The decline in FDI net inflows reflected the 70.7 percent contraction in non-residents’ net investments in debt instruments to $161 million from $551 million in the same month last year.

Meanwhile, non-residents’ net investments in equity capital (other than reinvestment of earnings) increased by 158.7 percent to $235 million from $91 million in May 2022. FDI remains subdued due to the effects of relatively higher price and interest rate levels globally.

Equity capital placements originated mostly from Germany, Japan, and the United States. These were invested largely in the manufacturing and real estate industries.

On a cumulative basis, FDI net inflows for the period January-May dropped by 20.8 percent to $3.4 billion from the $4.3 billion net inflows posted in the same period in 2022. BSP