^

Net FDI surge 184% to $3.5 B in Jan-April

Lawrence Agcaoili (The Philippine Star) - July 12, 2016 - 12:00am

MANILA, Philippines - Foreign direct investment (FDI) inflows surged 184 percent to $3.49 billion in the first four months from $1.23 billion in the same period last year on the back of the country’s strong macroeconomic fundamentals, the Bangko Sentral ng Pilipinas (BSP) reported yesterday.

The BSP attributed the sharp increase to strong investor confidence in the economy on the back of sound macroeconomic fundamentals.

“The surge in FDI inflows is reflective of the favorable investment climate as the economy continued to post strong growth and show even better growth potential,” the central bank said.

The economy accelerated 6.9 percent in the first quarter, faster than the revised 6.5 percent in the fourth quarter of last year due to robust domestic demand and higher government spending.

Data showed net equity capital inflows jumped 373 percent to $1.32 billion in the first four months from $279 million in the same period last year.

Equity placements surged 290 percent to $1.44 billion from $369 million, while withdrawals increased 31 percent to $117 million from $90 million.

The bulk of the equity came from Japan, Hong Kong, Singapore, US, and Spain. These were channeled to financial and insurance activities; construction, accommodation, and food service; real estate; and manufacturing.

The BSP data also showed net investments in debt instruments or lending by parent companies abroad to their local affiliates to fund existing operations and business expansion jumped 180 percent to $1.92 billion from $687 million.

It also said reinvestment of earnings slipped 4.1 percent to $255 million in the first four months from $266 million in the same period last year.

FDI inflows picked up in April ahead of the May 9 polls. The new administration vowed to continue the reforms undertaken by the Aquino administration.

For April alone, net FDI inflows zoomed 476 percent to $2.2 billion from $382 million in the same month last year.

Net equity inflows surged by a dramatic 3,199 percent to $825 million from $25 million.

Equity placements were 21 times more at $839 million in April from $39 million in the same month last year, while withdrawals declined 6.3 percent to $13 million from $14 million.

Majority of the capital infusions came from Japan, US, the Netherlands, Germany, and Taiwan and were channeled to financial and insurance; real estate; manufacturing; wholesale and retail trade; and administrative and support service activities.

Philstar
  • 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!

FORGOT PASSWORD?
SIGN IN
or sign in with