MANILA - Budget Secretary Benjamin Diokno said at his weekly media briefing today that a big deal was made of the August decline in the net inflows of foreign direct investments or FDI.
“You should pay more attention to the 31 percent increase in year-to-date FDI as of August”, he added.
We take a deep dive into the numbers and see what happened.
From this bar chart, it’s evident that net FDI inflows in August were the lowest in five months. However, the 41.2 percent decline can also be attributed to a higher base in August 2017 ($1.3 billion) – in fact the second highest for 2017.
On a cumulative basis, net FDI inflows for the first eight months of the year reached $7.4 billion, 31 percent higher than the $5.7 billion registered in same period last year.
Breaking down the FDI components, net equity capital investments expanded more than twice in the first eight months of the year to $2 billion from $990 million in the same period in 2017.
Investments in debt instruments grew by 17.9 percent to $4.9 billion from $4.1 billion last year while reinvestment of earnings declined by 1.7 percent to $536 million during the period.
Source of raw data: Bangko Sentral ng Pilipinas
Processed by: ABS-CBN Data Analytics