Investors remained positive toward the Philippine economy as the 10-month foreign direct investment (FDI), which flowed into the country reached $3.4 billion.
Data from the Bangko Sentral ng Pilipinas (BSP) on Friday showed that the January to October 2013 direct investment inflows were 35.3 percent higher compared to the recorded $2.5 billion of the same period in 2012.
The BSP is targeting a $2.1-billion FDI inflow in 2013 and $2.6 billion this year.
“The notable rise in foreign investments into the country reflects favorable investor sentiment on the back of the country’s macroeconomic stability amid challenging global economic conditions,” the central bank said in a statement.
In October 2013 alone, FDI inflows posted an increase of 65.9 percent to reach $254 million, higher than the $153 million posted in the same month of 2012.
The month’s net FDI inflows were observed placements in debt instruments, equity capital and reinvest of earnings.
The data showed that more than half of the FDI during the period came from nonresidents’ net placements in debt instruments issued by local affiliates, amounting to $135 million.
“Equity capital also helped boost FDI net inflows as gross placements of $115 million more than offset withdrawals of $47 million,” the BSP said.
Meanwhile, gross equity placements that were sourced mostly from the United States, Singapore, Switzerland, Hong Kong and Taiwan were channeled mainly to manufacturing; transportation and storage; financial and insurance; real estate; and mining and quarrying activities.
On the other hand, reinvestment of earnings amounted to $50 million, lower by 44.2 percent compared to $90 million registered during the same period in 2012.