BSP raises net FDI inflow estimate to $9.2 B this year
The central bank has raised its foreign direct investments (FDI) net inflow estimate for this year to $9.2 billion from an $8.2-billion forecast announced six months ago in anticipation of higher domestic growth, geared-up infrastructure program and improved investor outlook for the Philippines.
Last year, the Bangko Sentral ng Pilipinas (BSP) registered $10 billion worth of FDI net inflows, a number that was record-breaking and 21.4 percent higher compared to what was reported in 2016. It also surpassed the 2017 projection of $8 billion.
The BSP said for 2018, they expect FDI – recorded in the financial account table of the balance of payments report – will have a higher net inflow than previously anticipated as it will be “driven primarily by the sustained positive developments in the domestic economy.”
The BSP added that the expected improvement in global economic conditions and the implementation of the government’s growthinducing public-private partnership projects will boost foreign capital investments.
“(The) FDI uptick is further seen in 2018 in line with the continued fast-tracking and modernization of the country’s soft and hard infrastructure, growing interest from non-traditional investment sources, and improved global perception of the Philippines as an investment destination,” said the BSP.
At the end of the first quarter 2018, FDI’s net inflows were up by 43.5 percent year-on-year to $2.18 billion.
FDI covers actual investment inflows such as equity capital, reinvestment of earnings, and borrowings between affiliates.
For the month of March alone, net FDI inflows reached $682 million which was 27 percent more than the previous year’s $537 million.