FDI to PH drops 18.5% in March due to pandemic

Foreign direct investment (FDI) into the Philippines declined by 18.5% to $507 million in March compared to $622 million in March 2019, due to the impact of the pandemic.

The BSP attributed this decline to dampened investor sentiment and reduced global economic activity caused by the spread of COVID-19.

Despite a sharp drop in March, net FDI inflows for the first quarter were $1.67 billion, down 14.2% from $1.95 billion in Q1 2019.

The decline was driven by a significant decrease in investments in debt instruments and reinvested earnings, while equity capital placements saw growth.