FDI inflows up 25.4% to $7B in Jan-Nov.
The Bangko Sentral ng Pilipinas (BSP) registered $6.97 billionworth of foreign direct investments (FDI) as of endNovember 2016, up 25.4 percent from the same period in 2015 of $5.56 billion, on sustained investors’ confidence in the country’s growth path and potential.
The BSP reiterated that the “continued FDI inflows were buoyed by investors’ confidence in the economy on the back of sound macroeconomic fundamentals and sustained growth potential.” Economic growth last year stood at 6.8 percent which was within the GDP target of six percent to seven percent for the period.
Based on central bank data, net availments of debt instruments amounted to $4.48 billion during the period which was up by 44.4 percent year-on-year or from $3.10 billion in the comparable period in 2015.
Net equity capital investments also increased by 3.4 percent to $1.828 billion from $1.767 billion. “This developed as gross equity capital placements of $2.4 billion exceeded withdrawals of $555 million,” the BSP explained.
A larger portion of equity capital placements came from Japan, Hong Kong, Singapore, US, and Taiwan. These funds are invested in the financial and insurance sector; arts, entertainment and recreation; manufacturing; real estate; and construction activities.
Reinvestment of earnings however fell by four percent from $691 million to $663 million as of end-November.
For the month of November alone, FDI net inflows totaled $756 million, 59.4 percent higher compared to November, 2015’s $474 million.
Majority of net inflows in November was in debt instruments or intercompany borrowing of $544 million, 193.8 percent more than the same period in 2015 of $185 million. “This more than compensated for the 34.7 percent decline in net equity capital investments to $154 million from $236 million.”
In gross terms, equity capital placements amounted to $437 million or up by 77.9 percent year-onyear while withdrawals was 2,780 percent higher at $283 million from the previous year’s $10 million.