FDI inflows up threefold in October to $2 billion: BSP

January 10, 2018

Foreign direct investments (FDI) net inflows rose threefold in October 2017 to $2 billion from $670 million registered in the comparable period in 2016, the Bangko Sentral ng Pilipinas (BSP) said Wednesday.

"The upswing in FDI reflects continued investor confidence in the country’s strong macroeconomic fundamentals and growth prospects," it said.

More than three-fourths of FDI net inflows were in the form of equity capital, with gross placements rising to $1.6 billion from $84 million a year ago.

"A significant portion of the equity capital placements were channeled to electricity, gas, steam and air-conditioning supply activities. The other sectors that received investment inflows were manufacturing; construction; real estate; and wholesale and retail trade," the central bank said.

The top country sources were the Netherlands, Singapore, Kuwait, the United States, and Germany. Investments in debt instruments (or inter company borrowings between foreign direct investors and their subsidiaries or affiliates in the Philippines) amounted to $431 million, albeit lower by 22 percent than the previous year’s level.  Reinvestment of earnings reached $57 million during the month.

On a cumulative basis, FDI net inflows for January to October of 2017 grew year-on-year by 20.5 percent to $7.9 billion.

Net equity capital investments increased by 54.7 percent to $2.6 billion as gross equity capital placements of $3.1 billion more than offset withdrawals of $465 million.

Gross equity capital placements came mostly from the Netherlands, the United States, Singapore, Japan and Hong Kong.

By economic activity, equity capital investments were channeled mainly to electricity, gas, steam and air-conditioning supply, manufacturing; real estate; construction; and wholesale and retail trade activities. DMS