• An above-target inflation that spoiled growth and jacked up borrowing costs for both consumers and businesses sent flighty foreign funds fleeing in 2023, with the exodus defying the Bangko Sentral ng Pilipinas’ (BSP) expectation of inflows.
  • Data released on Thursday by the BSP showed a net outflow of $247 million in foreign portfolio investments (FPIs) in 2023, a reversal from the $887-million net inflow recorded in 2022. A net outflow means more hot money left the economy than entered, while a net inflow occurs when the reverse happens.
  • In December 2023 alone, FPIs registered a net outflow of $205 million, a turnaround from the $673-million net inflow in November.
  • The BSP forecasts a $1.7-billion hot money net inflow this year.