11-month net foreign direct investment inflows down 10.8%

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Long-term investments continued to come into the country at lower numbers as of the first 11 months of last year as the economic uncertainty caused by coronavirus pandemic dampened businesses’ expansion plans, data from the central bank showed.

Nonresidents’ net investments in equity capital declined by 57.3 percent to $66 million in November 2020 from $155 million in the comparable period in 2019.

Equity capital placements came mainly from the Netherlands, Japan and the United States. These were invested mostly in the financial and insurance; real estate; and manufacturing industries. Reinvestment of earnings, however, fell by 36.5 percent to $56 million from $88 million in November 2019. By component, nonresidents’ net investments in debt instruments dropped by 19.3 percent to $3.8 billion from $4.7 billion. Reinvestment of earnings contracted by 21.9 percent to $760 million from $974 million.By contrast, nonresidents’ net investments in equity capital expanded by 48.6 percent to $1.3 billion from $851 million, which partly eased the decline in the cumulative foreign direct investment net inflows.

 

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