PRODUCTIVE STATE VISITS

Presidential state visits drive surge in FDI inflows, employment rate

RECENT data indicate the significant impact of the state visits of President Ferdinand R. Marcos, Jr., together with Department Trade and Industry (DTI) Secretary Fred Pascual and other Cabinet officials, on the Philippine economy as the national government recorded a notable increase in net foreign direct investments (FDI) inflows across various sectors and a reduction in the unemployment rate last year.

Based on the report of the Bangko Sentral ng Pilipinas (BSP) covering January to November 2023, Manufacturing led in gross placements of equity capital with 50 percent, followed by Real Estate (15 percent) and Financial and Insurance (12 percent).

FDI net inflows surged by 27.8 percent year-on-year to US$1.048 billion in November 2023, up from $820 million recorded in November 2022. This growth broke three consecutive months of contraction.

“Indeed, we are making it happen in the Philippines. The pipeline of projects initiated during President Marcos Jr.’s presidential visits, along with the goodwill fostered, is starting to yield tangible results, as shown by the latest FDI report from BSP. From January to November last year, we observed a substantial rise in FDIs in manufacturing and a significant surge in FDIs originating from Germany,” said Secretary Fred Pascual who is also the chairman of the Board of Investments (BOI).

During the first 11 months of the year, Japan (US$667.58 million), Singapore (US$158.88 million), Germany (US$149.80 million), and the United States (US$110.8 million) emerged as the primary sources of equity capital placements. Germany garnered the highest increase in growth rates, jumping by 1,571.83 percent from US$8.96 million in January to November 2022 to US$149.80 million for the same period in 2023. /