Foreign direct investments (FDI) surged to a two-month peak in January, the central bank said Tuesday, April 10, with inflows expected to keep rising this year amid upbeat domestic activity and positive market sentiment.
Investments to the Philippines netted $919 million for the month, jumping by 56.7% from the $587 million posted in January 2017, the Bangko Sentral ng Pilipinas (BSP) said. The figure is the highest since the $990 million received in November last year.
“Investor outlook on the country’s economic performance remained positive on the back of strong macroeconomic fundamentals,” the central bank said in a statement.
Singapore, China, Taiwan, Japan and the United States were the biggest sources of capital during the month. Companies involved in manufacturing; financial and insurance; real estate; electricity, gas, steam and air-conditioning supply; and wholesale and retail trade activities received the biggest investments, the central bank said.
FDIs are a key source of capital for the local economy, creating more jobs for Filipinos as these fuel business expansions. The inflows likewise provided a strong start towards an $8.2-billion FDI forecast for 2018. Net inflows posted a record $10.049 billion last year, jumping by a fifth from $8.28 billion in 2016. — Melissa Luz T. Lopez