PH FDI inflows hit $1.3 billion in July, highest in a year

Net foreign direct investment (FDI) inflows into the Philippines reached $1.3 billion in July, marking the highest monthly tally in a year despite a 7.5 percent decrease compared to the same period last year.

The year-on-year decline was primarily driven by a 39.4 percent drop in nonresidents' net investments in debt instruments, falling to $711 million from $1.172 billion.

This decrease was partially offset by an 181.7 percent growth in nonresidents' overall investments in equity and investment fund shares, which rose to $557 million from $198 million.

Specifically, net investments in equity capital, excluding reinvestment of earnings, surged by 450.6 percent to $418 million.

The majority of these investments originated from Japan and flowed mainly into the wholesale and retail trade sector.

Despite these figures, the Philippines continues to face challenges in attracting foreign capital compared to its neighboring countries, even as the government aims to boost investments through recent economic liberalization measures.