Foreign direct investments (FDI) net inflows went up by 23.1 percent in March this year, the Bangko Sentral ng Pilipinas (BSP) said on Monday.

In a report, the BSP said FDI net inflows during the month reached $686 million from $557 million net inflows in the same month last year.

"The expansion in FDI net inflows was driven mainly by nonresidents’ net investments in debt instruments, which grew by 19.0 percent year-on-year to $465 million from $391 million in March 2023," the BSP said.

Nonresidents’ net investments in equity capital also grew by 67.1 percent from $94 million to $157 million.

Reinvestment of earnings, however, declined by 11.3 percent to $64 million in March 2024 from $72 million in March 2023.

FDIs include investment by a nonresident direct investor in a resident enterprise, whose equity capital in the latter is at least 10 percent, and investment made by a nonresident subsidiary or associate in its resident direct investor.

The FDI could be in the form of equity capital, reinvestment of earnings, and borrowings.

The central bank said equity capital placements during the month mostly came from Japan, Singapore, and the United States and were invested in manufacturing, financial and insurance, and real estate industries.

For the first three months of the year, FDI net inflows grew by 42.1 percent to $3.0 billion from $2.1 billion in the first quarter of 2023.

"FDI increased during the quarter on the back of the country’s strong growth prospects and moderating inflation," the BSP said.

The Netherlands and Japan were the top sources of FDI in the first quarter of the year.

Foreign direct investments (FDI) net inflows went up by 23.1 percent in March this year, the Bangko Sentral ng Pilipinas (BSP) said on Monday.

In a report, the BSP said FDI net inflows during the month reached $686 million from $557 million net inflows in the same month last year.

"The expansion in FDI net inflows was driven mainly by nonresidents’ net investments in debt instruments, which grew by 19.0 percent year-on-year to $465 million from $391 million in March 2023," the BSP said.

Nonresidents’ net investments in equity capital also grew by 67.1 percent from $94 million to $157 million.

Reinvestment of earnings, however, declined by 11.3 percent to $64 million in March 2024 from $72 million in March 2023.

FDIs include investment by a nonresident direct investor in a resident enterprise, whose equity capital in the latter is at least 10 percent, and investment made by a nonresident subsidiary or associate in its resident direct investor.

The FDI could be in the form of equity capital, reinvestment of earnings, and borrowings.

The central bank said equity capital placements during the month mostly came from Japan, Singapore, and the United States and were invested in manufacturing, financial and insurance, and real estate industries.

For the first three months of the year, FDI net inflows grew by 42.1 percent to $3.0 billion from $2.1 billion in the first quarter of 2023.

"FDI increased during the quarter on the back of the country’s strong growth prospects and moderating inflation," the BSP said.

The Netherlands and Japan were the top sources of FDI in the first quarter of the year.