The Philippines: Foreign direct investments plunge in Apr 20

• Foreign investments plunged to an 11-month low in Apr 20, as the coronavirus pandemic prompted lockdowns that disrupted economic activity around the world.
• Net inflows of foreign direct investments (FDI) declined by 67.9% y/y to USD311mn in Apr 20, from the USD971mn booked in Apr 19, data from the Bangko Sentral ng Pilipinas (BSP) showed. This is 38.66% lower than the USD507mn tallied in Mar 20.
• The Apr 20 inflows are the lowest since the USD280mn recorded in May 19.
• “The slowdown in FDI inflows reflected the continued weak global and domestic demand prospects prompting many investors to put on hold investment plans amid the unresolved COVID-19 pandemic,” the BSP said in a statement on 22 Jul 20.
• The significant drop in Apr 20 was attributed to a 73.2% decline in net investments in debt instruments to USD223mn from the 2019 figure of USD832mn.
• Reinvested earnings, or funds which foreign businesses chose to keep here to fuel business expansions, also slipped by 15.8% to USD81mn in Apr 20 from the USD96mn in 2019.

External Link : https://www.bworldonline.com/foreign-direct-investments-plunge-in-april/