Inflation fears sink job-generating FDIs in January
MANILA, Philippines — Foreign direct investments in the Philippines sagged in the first month of 2023 amid a continued risk-aversion among investors, as stubbornly high inflation threatens to sink the global economy into another recession.
FDIs posted a net inflow of $448 million in January, plummeting 45.7% year-on-year, the Bangko Sentral ng Pilipinas reported Tuesday.
“FDI net inflows declined during the month amid global economic uncertainties and high inflation, which continued to weigh on investor decisions,” the BSP said.
A net inflow happens when more FDIs enters the country against those that left.
The BSP attributed the slump to a “decrease in non-residents’ net investments in debt instruments and equity capital.”
“Meanwhile, non-residents’ reinvestment of earnings increased slightly,” the central bank added.
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