Net foreign direct investments (FDI) declined in February, the Bangko Sentral ng Pilipinas (BSP) reported on Tuesday, but the year-to-date the tally showed sustained growth compared to the same period last year.
The central bank said FDI registered a net inflow of $349 million, a 2.9-percent drop from the $359 million recorded in February 2015 due to lower net inflows from intercompany borrowings.
For the January to February period, FDI hit $963 million in net inflows, up 50.6 percent from $622 million as all components registered increases.
The BSP has a $6.3-billion target for this year. Last year saw net FDI hitting $5.72 billion, falling short of the $6-billion forecast
Intercompany borrowings or nonresidents’ net placements in debt instruments issued by local affiliates, recorded lower net inflows of $98 million, down 19.8 percent from $122 million a year earlier.
Net equity capital investments expanded by 6.9 percent to $192 million from $179 million a year earlier. Equity capital placements of $211 million more than offset withdrawals of $19 million.
Reinvestments of earnings, meanwhile, gained 2.6 percent to $59 million from $73 million a year earlier.
The bulk of equity capital investments came from Spain, Japan, Hong Kong, the United States and Germany, and were channeled mainly to construction; manufacturing; real estate; accommodation and food service; and electricity, gas and steam and air conditioning supply activities.
For the January to February 2016 period, the BSP said all FDI components registered increases “as investors’ confidence was buoyed by the country’s economic growth prospects and sound macroeconomic fundamentals.”
Investments in equity capital registered net inflows of $449 million during the period from $205 million last year.
The bulk came from the Hong Kong, Spain, Bahamas, Taiwan and Japan.
Non-residents’ net investments in debt instruments reached $355 million, 23 percent higher than the previous year’s $289 million.
Reinvestments of earnings for the first two months of the year also increased by 3.2 percent to $132 million.