FDIs breach $1-B mark

MANILA, Philippines – Foreign direct investments (FDIs) breached $1 billion in January, its highest level in two years, the Bangko Sentral ng Pilipinas (BSP) reported yesterday.

The central bank said this was primarily driven by foreign companies lending to their local counterparts “to fund existing operations and the expansion of their businesses in the country.”

“(Such is) an indication of sustained confidence in the country’s strong macroeconomic fundamentals,” the BSP stressed.

Net FDI inflows grew 5.3 percent to $1.027 billion in January from $976 million in the same month last year.

The latest figure is the highest since the $1.059 billion recorded in January 2012.

During the first month of the year, placements in debt instruments issued by local affiliates climbed 7.3 percent to $687 million, while reinvested earnings fell 26.3 percent to $62 million.

Net equity capital inflows, meanwhile, slightly rose 1.3 percent to $340 million in January, the central bank said.

The BSP noted gross equity capital placements came mainly from Hong Kong, the United States, Japan, Singapore and the United Kingdom.

These inflows were primarily invested in financial and insurance; wholesale and retail trade; real estate; manufacturing; and information and communication activities.

Last year, net FDI inflows increased 20 percent to $3.86 billion, surpassing the central bank’s $2.1-billion assumption for 2013.

The BSP has forecast net FDI inflows to reach $2.6 billion this year.

 

Source: http://www.philstar.com/business/2014/04/11/1311136/fdis-breach-1-b-mark