Philippines captures FDI for US$ 5.1 billion
The Philippines captured Foreign Direct Investment (FDI) inflows of US$5.1 billion in the first seven months of 2022, down 12.0% year-on-year, according to preliminary data from the Philippine government.
More than anything else, the lower inflows were due to a decline in net debt instruments from $4.1 billion in the first seven months of 2021 to $3.6 billion in the first seven months of 2022.
The Philippines has a mixed economy in which the government participates directly in certain economic activities through government financial institutions (GFIs) and government-owned and controlled corporations (GOCCs), which are corporations in which at least 51% of the capital stock is owned by the government, either directly or indirectly through its instrumentalities.
The government actively encourages domestic and foreign private investment.
The Philippines has undertaken trade and investment liberalization along with deregulation of the financial system, foreign exchange liberalization, tax reforms, accelerated privatization, increased competition in the provision and operation of public utilities, and deregulation of the oil and energy industries.
FDI
Foreign direct investments declined mainly as a result of a decrease in net investments in electricity, gas, steam and air conditioning supply from a net inflow of $246.7 million in the first seven months of 2021 to a net inflow of $12.5 million in the same period of 2022.
The result was also due to a decrease in net investments in financial and insurance activities, which went from a net inflow of $204.3 million in the first seven months of 2021 to a net inflow of $111.5 million in the first seven months of 2022.
This was partially offset by an increase in net investments in construction, which went from a net inflow of $12.6 million in the first seven months of 2021 to a net inflow of $151.1 million in the first seven months of 2022, and an increase in net investments in real estate activities, which went from a net inflow of $85.2 million in the first seven months of 2021 to a net inflow of $116.0 million in the first seven months of 2022.
