FDIs post $1.2-B net inflow in August
The country’s foreign direct investments (FDI) registered net inflows of $1.203 billion in August, up 70 percent year-on-year or from $708 million, the Bangko Sentral ng Pilipinas (BSP) announced yesterday. “This reflected continued favorable investor sentiment on the Philippine economy on the back of the country’s strong macroeconomic fundamentals,” said the BSP. “All FDI components posted net inflows during the period.” These are actual investment inflows such as equity capital, reinvestment of earnings, and borrowings between affiliates. For the January-August period, FDI net inflows totaled $5.107 billion which was lower compared to the same time last year of $5.385 billion or down by 5.2 percent. “The main reason for the decline in FDI was the lower equity capital placements and higher withdrawals during the period,” explained the BSP. The net equity capital investments also dropped by 40.3 percent for the eightmonth tally to $883 million compared to the previous year’s $1.479 billion. Equity capital infusions were traced from investors in the US, Singapore, Japan, the Netherlands, and Hong Kong. The investments went to these sectors: manufacturing; the real estate; wholesale and retail trade; financial and insurance; and electricity, gas, steam and air conditioning supply activities. In contrast, investments in debt instruments amounted to $3.7 billion, an expansion of 8.4 percent from $3.4 billion last year, said the BSP. In addition, reinvestment of earnings grew by 6.4 percent to $546 million during the period.