Net inflows of foreign direct investments (FDI) hit an eight-month high in October last year, according to data from the Bangko Sentral ng Pilipinas.

BSP data released on Friday showed that FDI net inflows reached $1 billion in October last year, the highest recorded since $1.3 billion in February 2024.

It was also up by 50.2 percent from the $681 million in October 2023.

"The increase in net FDI inflows was due to the 60.7 percent growth in nonresidents' net investments in debt instruments to $839 million from $522 million," the BSP said.

The BSP added that non-residents’ net investments in equity capital other than reinvestment of earnings, rose by 34.1 percent to $100 million from $74 million.

The growth in FDI inflows, however, was moderated by the 0.9 percent decline in non-residents' reinvestment of earnings which amounted to $83 million from $84 million in October 2023.

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

The BSP said an FDI can be in the form of equity capital, reinvestment of earnings, and borrowings.

The BSP said top country sources during the month were Japan, the United States, and Singapore.

These were channeled mainly to manufacturing, real estate, and construction.

From January to October last year, FDI net inflows increased by 8.2 percent to $7.7 billion from $7.1 billion in the same period in 2023.

Bulk of the equity capital placements during the period were from the United Kingdom, Japan, the United States, and Singapore.

The BSP said these mainly went to manufacturing, real estate, and wholesale and retail trade.