Daily News

Inflation, tax perk jitters weigh on FDIs

Foreign direct investment (FDI) net inflows fell short of expectation last year after 5 straight months of decline from 2017 amid rising prices and jitters due to planned changes to tax perks. FDI net inflows ended last year at $9.802 billion last year, down 4.4% from the $10.256 billion received in 2017, the Bangko Sentral ng Pilipinas (BSP) or central bank reported. It was the first drop of such inflows in 3 years. The amount is also lower than the $10.4 billion net inflows which the central bank expected for the full year, which would have otherwise been a fresh record high. The BSP said net inflows settled at $677 million in December alone, 4.8% lower than the $712 million received in the same month in 2017. This marks a sustained year-on-year drop in FDIs since August.