Manila: Foreign direct investments (FDI) recorded net inflows of USD376 million in June, the Bangko Sentral ng Pilipinas (BSP) said. Data released on Wednesday showed that the net inflow during the month was lower by 17.8 percent from the USD457 million in June 2024.

According to Philippines News Agency, 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. It can be in the form of equity capital, reinvestment of earnings, and borrowings.

The BSP said the slowdown in FDI net inflows during the month reflected the shift in non-residents' net investments in equity capital from USD85 million inflows to USD57 million outflows. This was, however, partly offset by a 36.7 percent increase in reinvestment of earnings, which amounted to USD128 million from USD94 million. Non-residents' net investments in debt instruments likewise grew by 9.3 percent, from USD279 million to USD305 million.

The BSP said Japan, the United States, and South Korea were the top sources of FDIs during the month. Industries that received most of these investments were manufacturing, real estate, and wholesale and retail trade. For the first half of the year, FDI net inflows amounted to USD3.4 billion. These mostly came from Japan, the US, Singapore, and South Korea.