Foreign direct investments recorded net inflows of $756 million

February 10, 2017

Foreign direct investments recorded net inflows of $756 million in November 2016, higher by 59.4 percent than the $474 million in the same period in 2015, the Bangko Sentral ng Pilipinas said Friday The bulk of the net inflows was in the form of debt instruments (or intercompany borrowings), which amounted to $544 million, about three times the $185 million recorded in November 2015. This more than compensated for the 34.7 percent decline in net equity capital investments to $154 million from $236 million. In gross terms, equity capital placements rose by 77.9 percent to $437 million while withdrawals increased by more than 28 times its level a year ago to reach $283 million. Equity capital infusion came mostly from Hong Kong, the United States, Taiwan, Germany, and Czech Republic. These were invested mainly in arts, entertainment and recreation; financial and insurance; real estate; wholesale and retail trade; and professional, scientific and technical activities.  Reinvestment of earnings grew by 9.5 percent to $58 million during the month. On a year-to-date basis, net FDI inflows registered a year-on-year increase of 25.4 percent to reach $7 billion from January-November 2016.  The continued FDI inflows were buoyed by investors’ confidence in the economy on the back of sound macroeconomic fundamentals and sustained growth potential. DMS