Investor confidence continues to support foreign direct investment (FDI) inflows into the country, going up by 22.4 percent to $2.6 billion during the first seven months of the year.
Data from the Bangko Sentral ng Pilipinas (BSP) showed that the January to July FDI figure was higher compared to the $2.1-billion level posted in the same period last year.
By FDI component, gross equity capital placements aggregated $2 billion, 59.2 percent higher compared to a year-ago level of $1.3 billion.
Nonresidents’ net placements in debt instruments issued by local affiliates (or intercompany borrowings between foreign direct investors and their subsidiaries/affiliates in the Philippines in the form of loans and debt securities) rose $1.6 billion in January to July 2013.
The data added that this level was “more than fourfold” the $362 million recorded in the same period last year.
“Parent companies abroad continue to lend funds to their local subsidiaries/affiliates to sustain existing operations or expand their businesses in the country,” it said.
Meanwhile, reinvestment of earnings reached $438 million, lower by 33.3 percent than the $657 million recorded in the same period last year.
For July alone, FDI inflows increased by 227 percent, reaching $533 million compared to the $163 million posted in the same month in 2012.
Nonresidents’ placements debt instruments issue by local affiliates registered net inflows of $437 million during the month, increasing by 606 percent from $67 million last year.
The data also said that equity capital yielded net inflows of $7 million for the month as gross placements of $61 million more than offset withdrawals of $54 million.
The central bank added that equity capital investments for July came from the United States, Germany, United Kingdom, Singapore and Taiwan.