Investors remain positive to the growth prospects of the Philippine economy as foreign direct investment (FDI), which flowed into the country for the first 11 months of 2013 reached P3.6 billion.
Data from the Bangko Sentral ng Pilipinas (BSP) on Monday showed that January to November 2013 direct investment inflows were 36.6 percent higher compared to the recorded $2.7 billion of the same period in 2012.
“This developed as parent companies abroad were encouraged by the sustained growth of the Philippine economy and thus continued to lend to their local subsidiaries/affiliates to fund existing operations and/or expansion of their businesses in the country,” the BSP stated.
In November 2013 alone, FDI inflows posted an increase of 54.9 percent to reach $286 million, higher than the $185 million posted in the same month of 2012.
The month’s net FDI inflows were observed in placements in debt instruments, equity capital and reinvestment of earnings.
The data said that nonresidents’ net placements in debt instruments issued by local affiliates increased $225 million during the period.
Net equity capital inflows, on the other hand, reached $7 million, as gross placements of $94 million more than offset withdrawals of $87 million in November 2013.
The central bank data noted that gross equity placements that were sourced mostly from the United States, Japan, the United Kingdom, Hong Kong and Singapore were channeled mainly to manufacturing; electricity, gas steam and air-conditioning supply; real estate; mining and quarrying; and wholesale and retail trade activities.
Meanwhile, reinvestment of earnings aggregated to $55 million in November 2013.