FDI net inflows rise by 27% in March; first quarter level posts $2.2b

June 11, 2018

Foreign direct investments (FDI) net inflows reached $682 million in March, representing a 27 percent growth from the $537 million recorded in the same period last year, the Bangko Sentral ng Pilipinas said Monday.

FDI inflows rose during the month as net equity capital increased markedly on the back of higher gross placements of equity capital ($351 million from $51 million) and lower withdrawals ($33 million from $42 million).

Equity capital infusions came mostly from Singapore, Hong Kong, Japan, the United States, and Sweden.

These were channeled largely to manufacturing; real estate; art, entertainment and recreation; and financial and insurance activities. Non-residents’ investments in debt instruments issued by local affiliates (or intercompany borrowings) posted net inflows of $301 million, albeit lower by 36.1 percent compared to its year-ago level.

Meanwhile, reinvestment of earnings increased by 12.6 percent to $63 million in March from $56 million in March 2017.

For the first quarter, FDI totaled $2.2 billion of net inflows, an increase of 43.5 percent from $1.5 billion in the comparable period last year.

This reflected investors’ continued positive outlook on the Philippine economy on the back of sound macroeconomic fundamentals and robust growth prospects. Net equity capital increased more than sixfold to $887 million from a year ago as gross placements of $996 million more than compensated for the withdrawals of $109 million.

Equity capital placements originated mainly from Singapore, Hong Kong, China, Japan, and Taiwan. Bulk of the placements were invested in manufacturing; financial and insurance; real estate; arts, entertainment and recreation; and electricity, gas, steam and air-conditioning supply activities.

Net investments in debt instruments reached $1.1 billion, a decrease of 8.2 percent from $1.2 billion in the previous year. Reinvestment of earnings was steady at $193 million. DMS