Philippines to attract more FDI despite global uncertainties — BSP

THE CENTRAL BANK expects a fresh high for foreign direct investments (FDI) this year, with strong economic growth prospects and the country’s infrastructure push expected to attract investors to the Philippines despite nagging global uncertainties.

The Bangko Sentral ng Pilipinas ( BSP) projects FDI inflows to hit $8 billion this year, slightly higher than the record $7.93 billion that entered in 2016.

Capital investments are likely to be sustained on the back of a recovery in the manufacturing sector, sustained growth in the services sector and the implementation of public- private partnership (PPP) projects, said Zeno Ronald R. Abenoja, director of the BSP’s economic research department.

FDIs totalled $1.56 billion as of end-March, surging by 16.6% from the $ 1.337 billion posted in the first quarter of 2016. The increase was fueled by a jump in intercompany borrowings as foreign firms invest more in their local affiliates to support operation and expansion plans, versus declining equity placements.

The Duterte administration is looking to spend P860.7 billion on public infrastructure projects this year, which forms part of a grand P8.4-trillion spending plan until 2022 as part of the government’s “Build, Build, Build” initiative.

BSP Deputy Governor Diwa C. Guinigundo has also pointed out that strong economic growth should keep foreign firms bullish on the Philippines, while noting that improvements among advanced economies will also spur more FDI flows.

“If the global growth continues to be entrenched, we should expect more inflow coming from major investment partners,” Mr. Guinigundo also said in a briefing last Friday. —