FOREIGN direct investments (FDI) recorded USD727 million net inflows in March 2022, the Bangko Sentral ng Pilipinas said on Monday.

This which was lower by 9.8 percent compared to the USD806 million net inflows in the same period last year.

For the first quarter, FDI net inflows totaled USD2.4 billion, the central bank said.

“Higher net inflows from intercompany borrowing/lending between foreign direct investors and their subsidiaries continued to make up for the lower net inflows from new equity and reinvested earnings,” the BSP said.

The BSP said external risks to the country’s sound macroeconomic fundamentals could have contributed to investors’ concern about the outlook on the global economic recovery.

The central bank also mentioned the impact of Russia’s invasion of Ukraine on commodities and financial markets, global policy tightening, and Covid-19 resurgence in other Asian economies.

The sustained FDI net inflows for the month came largely from non-residents’ net investments in debt instruments of local affiliates which expanded by 45.1 percent, the BSP said.

Non-residents’ net investment in equity capital fell by 69.6 percent compared to the same month last year, resulting in the contraction of equity capital placements by 68.7 percent but was mitigated by the decline in equity capital withdrawals, the BSP said.

The BSP said equity capital placements were sourced primarily from Japan, US and Singapore which are largely infused in manufacturing, real estate and financial and insurance industries. (with PR)