MANILA – The country’s foreign direct investment (FDI) is expected to rise by the second half of the year with the easing of monetary policy globally, a unit of Fitch Solutions said.
In its commentary sent to media Monday, Fitch's BMI said attracting FDIs may start to improve in the coming quarters, following a 15-percent contraction from January to September 2023, which mirrored the trend across the region.
“Admittedly, foreign investment performed poorly in 2023… The decline in investment activity can largely be attributed to restrictive global monetary conditions,” the commentary read.
The BMI said investment climate this year appears more promising than 2023, forecasting that several central banks, including the United States, are seen to relax their monetary policy starting in the second half of the year.
It added that the Marcos administration’s “business-friendly environment” will also contribute positively in attracting foreign investments this year.
Despite the decline in net FDI inflows in the first three quarters of 2023, the Philippines rose in its FDI inflows ranking in Southeast Asia.
Earlier, Trade Undersecretary and Board of Investments Managing Head Ceferino Rodolfo said the country’s net FDI inflows of USD5.88 billion exceeded the FDI levels of Malaysia at USD4.99 billion and of Thailand at USD4.44 billion. (PNA)
