Net foreign direct investments (FDI) surged in December last year but were not enough to push the 2023 tally past the previous year's count, Bangko Sentral ng Pilipinas (BSP) data showed on Monday.

The month's net inflow of $826 million — 29.9 percent higher compared to a year earlier — brought the full-year result to $8.86 billion, 6.6 percent down from 2022's $9.5 billion.

"Notwithstanding the country's sound macroeconomic fundamentals, concerns over subdued global economic growth and geopolitical risks continued to weigh on investors' investment plans," the central bank said in a statement.

Net equity capital placements declined by 34 percent to $1.3 billion last year from $1.96 billion in 2022, while reinvestments of earnings slid to $1.2 billion, down 3.65 percent from $1.3 billion.

Net investments in debt instruments, on the other hand, edged up by 1.3 percent to $6.33 billion from $6.25 billion.

Equity capital placements for the full year originated mostly from Japan, the United States, Germany and Singapore.

More than half, or 53 percent, went to manufacturing, followed by real estate (13 percent), finance and insurance (10 percent), and others (23 percent).

December's rise, meanwhile, was said to be primarily due to an 86.2-percent surge in net investments in debt instruments, to $527 million from $283 million 12 months earlier.

Reinvestments of earnings also rose by 4.1 percent to $91 million from $87 million.

Net investments in equity capital, however, plunged by 21.7 percent to $208 million from $266.

Japan accounted for the bulk — 81 percent — of December FDI, followed by Singapore and the US, which had 5 percent shares each.

The funds were mostly channeled to manufacturing (79 percent), followed by real estate (6.0 percent) and wholesale and retail trade (4.0 percent).

Sought for comment, ING Manila Bank senior economist Nicholas Antonio Mapa said he was hopeful that December's momentum would carry over to 2024.

Rizal Commercial Banking Corp. chief economist Michael Ricafort, meanwhile, said that "for the coming months, possible cuts in the local policy rates later in 2024 could also lead to some pick up in FDIs eventually."