MANILA, Philippines –  The Philippines managed to attract a strong inflow of foreign direct investments (FDIs) in 2016 despite external shocks brought about by the decision of the United Kingdom to leave the European Union and the increase in interest rates in the US.

The Bangko Sentral ng Pilipinas (BSP) reported yesterday FDI inflows reached $7.93 billion last year, $2.29 billion higher than the $5.64 billion recorded in 2015 and exceeded the  $6.7 billion target set by the BSP.

“FDI inflows remained robust, supported by strong investors’ confidence in the country’s solid macroeconomic fundamentals,” the central bank said.

Net FDI inflows peaked at $2.24 billion in April last year with the infusion of P37 billion by the Bank of Tokyo – Mitsubishi UFJ Ltd in exchange for a 20 percent stake in listed Security Bank Corp.

Data showed equity placements inched up 1.4 percent to $2.68 billion last year from $2.64 billion while withdrawals fell 22.1 percent to $643 million from $826 million.

This translated to a 12.1 percent rise in net equity capital investments to $2.03 billion from $1.82 billion.Equity capital infusion came mostly from Japan, Hong Kong, Singapore, the US, and Taiwan.

The funds were invested mainly in financial and insurance; arts; entertainment and recreation; manufacturing; real estate; and construction activities.

Data showed net availment of debt instruments jumped 68.6 percent to $5.2 billion last year from $3.07 billion in 2015.

“This resulted as all FDI components continued to register net inflows,” the BSP said.

For December alone, net FDI inflows surged 146 percent to $669 million from $272 million in the same month in 2015.

Equity placements soared 202 percent to $294 million in December last year from $97 million in December 2015 while withdrawals grew faster at 327 percent to $88 million from $20 million

The net inflow during the month was in the form of debt instruments or intercompany borrowings that amounted to $415 million, 198 percent higher than the $139 million registered in December 2015.

The country’s gross domestic product (GDP) grew 6.8 percent last year, well within the six to seven percent target set by economic managers and faster than the 5.9 percent expansion recorded in 2015.

Source: http://www.philstar.com/business/2017/03/11/1679809/fdi-inflows-surpass-2016-target