|
Foreign direct investments in the Philippines plunged 43.5 percent
from a year earlier to $820 million in the four months to April, the
Bangko Sentral ng Pilipinas reported Thursday.
April’s figure, however, rose more than
four-fold from a year earlier to $269 million, a statement from the
central bank said.
The four-month drop was “due to the generally
sluggish economic growth in major investor countries, particularly
the United States, and the prevailing cautious investor sentiment
amid global uncertainties,” the statement explained.
Investments came mainly from Japan, Malaysia,
Singapore, South Korea, Germany and the United States, the Bangko
Sentral said. They were channeled into the manufacturing, services,
mining, construction and real-estate sectors and financial
institutions.
Flows of foreign direct investment into the
country came from a high base in the first four months of 2007
because of a big-ticket investment in a local beverage company, it
added.
The Bangko Sentral recently downgraded its
foreign direct investment forecast to $2.6 billion this year, lower
than the earlier forecast of $4.2 billion because of the
postponement of some mining investments brought about by
environmental issues and higher prices.
Gross equity capital placements reached $411
million in the first four months of the year, 50 percent lower
compared with $822 million during the same period in 2007.
Reinvested earnings in the first four months of
2008 amounted to $131 million, or 7.7 percent lower than the level
posted during the comparable period in 2007. The drop was caused by
the repatriation of profits by local companies to their foreign
investors.
In terms of equity capital, foreign direct
investment net inflows increased by 107.8 percent to $106 million in
January to April 2008, mainly because of higher gross equity capital
placements totaling $127 million.
Reinvested earnings posted significant gains,
recording higher net inflows of $31 million (from $10 million in
April 2007) and other capital, $132 million ($2 million also in
April 2007).
Year-to-date, net inflows in equity capital
amounted to $299 million as of end-April this year, which declined
by 59.4 percent compared with $736 million during the same period
last year.
The other capital account, which consists
largely of intercompany borrowing or lending between foreign direct
investors and their subsidiaries and affiliates in the Philippines,
also registered a net inflow of $390 million in the first four
months of 2008, although lower relative to the $573-million net
inflow during the same period in 2007. This was mainly because of a
decline in net loans taken by local subsidiaries from their foreign
or parent companies.
The Bangko Sentral said total net foreign
portfolio investments reached an outflow of $411 billion as of June
27, 2008, with an inflow of $2.552 billion in June 2007.
It expects the net foreign portfolio investments
to reach $1.1 billion this year, lower than the $3.5 billion last
year because of risk aversion and high oil prices.
-- Maricel E. Burgonio, AFP and Xinhua
|
