Foreign direct investment (FDI), which flowed into the Philippines for the first eight months of the year, reached $2.8 billion as investors remained positive to the country’s economic prospects.
Data from the Bangko Sentral ng Pilipinas (BSP) on Monday showed that the January to August FDI was 25.4 percent higher compared to the recorded $2.2 billion of the same period a year ago.
“The significant rise in foreign investments into the country reflects the positive outlook of investors on the Philippines’ economic prospects in spite of the challenging global economic conditions,” the central bank said in a statement.
The BSP added that the country’s domestic economic prospects have been supported by sound macroeconomic fundamentals and a smoothly functioning financial system.
In August 2013 alone, FDI inflows posted an increase of 123 percent to reach $143 million.
The central bank said that the August figure is more than twice the $64 million posted in the same month in last year.
The month’s net FDI inflows were observed in equity capital, reinvest of earnings and placements in debt instruments.
Equity capital yielded net inflows of $42 million as gross placements of $91 million more than offset withdrawals of $49 million.
Placements that were sourced mostly from the United States, Singapore, the United Kingdom, Japan and Germany were channeled mainly to financial and insurance; real estate; manufacturing; human, health and social work; and information and communication activities.
Reinvestment of earnings, on the other hand, posted $54 million, lower by 18.4 percent compared to $66 million registered in the same month last year, while nonresidents’ placements in debt instruments issued by local affiliates reversed to net inflows of $47 million during the month, from net outflows of $44 million a year ago.