FOREIGN direct investments (FDI) in February resurged after a slowdown largely due to the robust increase in net equity capital during the period, the central bank said on Monday.
Net FDI in February rose 17.9 percent to $359 million from $305 million in the same month last year, and was up 36.5 percent from $263 million recorded in January this year, figures released by the Bangko Sentral ng Pilipinas (BSP) showed.
Cumulative FDI for the first two months totaled $266 million, lower by 48.6 percent from the $1.2 billion posted in the year-earlier period.
The BSP said the increase in FDI was due largely to the 184 percent increase in net inflow in equity capital to $179 million from a $63 million net inflow seen a year earlier.
Placements expanded by 103.6 percent to $192 million, offsetting withdrawals of $13 million.
The bulk of the equity capital investment for February originated mainly from the United States, Spain, the United Kingdom, Japan, and Singapore and were channeled to activities related to manufacturing; electricity, gas and air conditioning supply; financial and insurance; transportation and storage; and professional, scientific and technical activities, the BSP said.
For the first two months of the year, these placements posted a net inflow of $205 million, or 22.4 percent lower than the year-ago level of $264 million.
Meanwhile, intercompany borrowings, or non-residents’ net placements in debt instruments issued by local affiliates eased to $122 million in February from $173 million a year earlier.
Intercompany borrowings for the first two months also dropped by 61.8 percent to $289 million from $757 million a year ago.
Reinvested earnings also eased to $58 million in February from $69 million a year earlier. On a cumulative basis, reinvestment of earnings dropped 32.1percent to $128 million from $189 million a year earlier.