Foreign direct investments surge by 46% in February

Foreign direct investments (FDI) posted $573 million net inflows in February this year, rising by 46.4% compared to the same period a year ago, the central bank reported on Thursday, May 10.
In a press release posted on its website,  the Bangko Sentral ng Pilipinas cited the 56.3% growth in investments in debt instruments amounting to US$412 million. Debt instruments are intercompany borrowings between foreign direct investors and their subsidiaries/affiliates in the country.
Net equity capital likewise increased by 55.4% to US$96 million, as gross placements of US$114 million more than compensated for the withdrawals of US$18 million. Equity capital placements came mostly from Hong Kong, the United States, China, the Netherlands, and Japan. The said placements were invested mainly in art, entertainment and recreation; real estate; manufacturing; construction; and electricity, gas, steam and air-conditioning supply activities. Meanwhile, reinvestment of earnings amounted to US$65 million during the period.
On a cumulative basis, FDI net inflows for the first two months of 2018 rose year-on-year by 52.6% to US$1.5 billion.
“The sustained investment inflows reflect investor confidence in the country’s sound macroeconomic fundamentals and growth prospects,” the central bank said in the statement.