Foreign direct investment (FDI) net inflows rose 13 percent  to  $1.05 billion in February versus $926 million in the same month last year, based on Bangko Sentral ng Pilipinas (BSP) data. However, net FDI inflows in the first two months of 2023 fell by 14.6 percent to $1.49 billion compared with the same period last year of $1.75 billion. The BSP said the year-to-date decline came from the lower net inflows of FDI components such as equity capital, reinvestment of earnings, and borrowings. “All major FDI components yielded lower net inflows as foreign investors remained cautious amid persistent and broadening global inflation,” the BSP said Wednesday, May 10. As to the February data, the BSP said FDI net inflows grew 13 percent because of the higher non-residents’ net investments in debt instruments – “notwithstanding lower net equity capital placements and reinvestment of earnings.” As defined by the BSP, FDI includes 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. In February, net debt instruments totaled $910 million, up 19.4 percent year-on-year while investment of earnings and net equity other than investment of earnings both declined by 6.5 percent and 23.6 percent respectively, to $62 million and $74 million. Year-to-date, net debt instruments decreased by 15.4 percent year-on-year to $1.19 billion. Investment of earnings dipped just one percent to $137 million while net equity other than investment of earnings dropped 18.1 percent to $167 million for the first two months. BSP’s FDI data covers actual investment inflows versus the Philippine Statistics Authority’s approved foreign investments data which are investment commitments. The BSP said most of the equity capital placements invested in manufacturing, real estate, electricity/gas steam/air conditioning supply, and financial and insurance industries for the month of January and February came from investors in Japan, Singapore, the US and the Cayman Islands. In 2022, net FDIs decreased by 23 percent year-on-year to $9.2 billion from $11.98 billion in 2021. For this year, the BSP forecasts net FDI will climb back to about $11 billion.