Foreign direct investments post $685m net inflows in January

April 10, 2017

Foreign direct investments (FDI) net inflows rose by 13.2 percent to reach $685 million in January, the central bank said Monday. “This developed as investors remain optimistic on the growth potential of the economy backed by strong macroeconomic fundamentals,” a central bank statement said. In particular, non-residents’ investments in debt instruments (or lending by parent companies abroad to their local affiliates to fund existing operations and business expansion) grew by 122.6 percent to $566 million from the year-ago level of $254 million, the central bank added. Non-residents’ net equity capital placements declined by 82.8 percent due primarily to the drop in fresh equity capital infusions.  The $48 million net inflows of equity capital resulted as placements of $63 million more than offset withdrawals of $15 million. Equity capital placements in January came largely from Germany, Singapore, Hong Kong, the United States, and Japan. These were channeled mainly to electricity, gas, steam and air conditioning supply; construction; wholesale and retail trade; administrative and support service; and financial and insurance activities.  Reinvestment of earnings amounted to $71 million. DMS