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By Maricel E.
Burgonio, Reporter
FOREIGN direct
investments (FDI) surpassed the government’s target last year, the
Bangko Sentral ng Pilipinas (BSP) said Friday.
FDI, which is
money used to establish or expand businesses and generate jobs,
reached $2.35 billion in 2006. This was $35 million more than the
government’s goal for the year, and 26.48 percent higher than the
$1.85 billion in 2005.
“The FDI
inflows were sustained as the country continued to post significant
macroeconomic gains in 2006 including strong external payments
position, better-than-expected fiscal position, and declining
inflation,” BSP Gov. Amando M. Tetangco Jr. said.
Japan, the
United States, the Netherlands, Germany, United Kingdom and
Switzerland were the major sources of inflows.
For December
alone, FDI rose to $130 million from $123 million a year ago.
Tetangco said
the higher level of FDI was shored up by the net inflows in the
equity capital account and other capital account. Under the equity
capital account, investments rose by 9 percent to $1.29 billion,
particularly into manufacturing, services, real estate, financial
intermediation, mining and construction industries.
The other
capital account, which consists mainly of intercompany borrowing and
lending transactions between foreign direct investors and their
local subsidiaries, branches and affiliates, increased to $1.08
billion last year.
Loans extended
by head offices to local subsidiaries or branches went mostly to the
electronics and automotive firms.
Foreign donor
agencies earlier said the Philippines should aim at sustaining FDI
growth to allow the domestic economy to expand at a faster pace.
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