^

Business

Net FDI surges 227% in July

Kathleen A. Martin - The Philippine Star

MANILA, Philippines - Foreign direct investments (FDI) ballooned in July, indicating continued investor confidence in the Philippines, the Bangko Sentral ng Pilipinas reported yesterday.

Net FDI inflows reached $533 million in July, a sharp 227- percent increase from the $163 million recorded in the same period last year.

“This reflected the continued confidence of investors in the Philippine economy on the back of strong macroeconomic fundamentals,” the central bank said.

BSP data showed placements in debt instruments soared 606 percent to $473 million in July from $67 million a year ago. These refer to borrowings made by local subsidiaries from their parent firms abroad.

However, reinvested earnings fell 20 percent to $52 million from $65 million last year, while net equity capital placements slid 77 percent to $7 million from $31 million.

The central bank noted “gross equity capital placements – sourced mostly from the United States, Germany, United Kingdom, Singapore and Taiwan – were channeled mainly to real estate; manufacturing; financial and insurance activities; wholesale and retail trade; and human, health and social work activities.”

In the seven months to July, net FDI inflow climbed 22 percent to $2.615 billion from $2.136 billion in the same period last year.

Placements in debt instruments surged 352 percent to $1.638 billion from $362 million, while reinvested earnings decreased 33 percent to $438 million from $657 million. Net placements in equity capital also fell 52 percent to $539 million from $1.117 billion last year.

Gross equity capital placements from January to July came from Mexico, Japan, the US, the British Virgin Islands, and Malaysia.

The BSP noted these funds went to manufacturing; water supply, sewerage, waste management and remediation; financial insurance activities; real estate; and arts entertainment and recreation.

The BSP expects net FDI to reach $2.2 billion this year, slightly above the $2 billion in 2012.

 

vuukle comment

BANGKO SENTRAL

BILLION

BRITISH VIRGIN ISLANDS

MILLION

PILIPINAS

PLACEMENTS

SINGAPORE AND TAIWAN

UNITED KINGDOM

UNITED STATES

  • Latest
  • Trending
Latest
Are you sure you want to log out?
X
Login

Philstar.com is one of the most vibrant, opinionated, discerning communities of readers on cyberspace. With your meaningful insights, help shape the stories that can shape the country. Sign up now!

Get Updated:

Signup for the News Round now

FORGOT PASSWORD?
SIGN IN
or sign in with