Foreign net inflows up 20% in 2013
BSP SETS HIGHER TARGET FOR 2014
Owing to the strong foreign net inflows in 2013, the Bangko Sentral ng Pilipinas said they are expecting foreign direct investments to post stronger growth this year.
Foreign companies that continued to invest and expand their businesses in the Philippines increased the country’s net foreign direct investment ( FDI) in 2013 to $3.9 billion, a 20% increase from 2012’s $ 3.2 billion, the Bangko Sentral ng Pilipinas reported.
The rise in FDI was also attributed to the issuance of local companies to investors of debt instruments that totaled to $ 2.5 billion, more than half of the 2013 FDI, the BSP noted.
Countries such as Mexico, Japan, United States, British Virgin Islands and Singapore contributed to the country’s gross equity capital placement of $ 2.5 billion, which went to manufacturing, water supply, sewerage, waste management and remediation, financial and insurance, real estate and mining and quarrying.
“Moreover, gross placements of equity capital of $2.5 billion more than offset withdrawals of $1.8 billion. As a result, net inflows of equity capital amounted to $ 664 million during the period,” the bank said.
In December 2013 alone, the FDI decreased to $ 180 million, an 18.5% lower than $ 221 million in the same period a year ago; the equity capital investments during the month has also declined from $ 210 million in 2012 to $60 million in 2013.
In the same month, the bank also reported an increase of issued debt instruments to reach $ 182 million from $51 million in December 2012.
The reinvestment of income in 2013 and December of the year amounted to $ 701 million and $ 57 million, respectively.
In a report from Philippine Star, BSP said it might revise its foreign direct investments target for this year following strong inflows in 2013.
BSP Deputy Governor Diwa C. Guinigundo said in a briefing that they are foreseeing higher FDIs in 2014. The central bank expects net FDI inflows to reach $ 2.6 billion this year.