NET foreign direct investments (FDI) continued to grow last November, the Bangko Sentral ng Pilipinas (BSP) reported on Thursday, but year to date the tally was lower compared to the same period in 2014.
The central bank said FDI hit a net inflow of $464 million, 16.4 percent up from the $399 million recorded in November 2014. The growth was significantly faster than the 1.4 percent rise in October as all major FDI components posted year-on-year expansions.
For the January to November period, FDI hit $5.452 billion in net inflows, down 3.4 percent from $5.646 billion.
The central bank has a $6-billion target for this year. Last year saw net FDI hit a record $6.2 billion, topping the $4.4-billion forecast.
Recording the biggest rise in November were intercompany borrowings or nonresidents’ net placements in debt instruments issued by local affiliates, which swelled by 26.6 percent to $187 million from $148 million a year earlier.
Net equity capital investments expanded by 11.2 percent to $224 million from $201 million a year earlier. Equity capital placements of $234 million more than offset withdrawals of $10 million.
Reinvestments of earnings, meanwhile, gained by 7.5 percent to $53 million from $50 million a year earlier.
The bulk of equity capital investments came from the Netherlands, South Korea, Hong Kong, Singapore and the United States, channeled mainly to manufacturing, financial and insurance, real estate, wholesale and retail trade, and information and communication activities.
For the January to November 2015 period, non-residents’ net investments in debt instruments reached $2.997 billion, 9.9 percent lower than the previous year’s $3.328 billion.
Reinvestments of earnings also declined by 9.7 percent to $691 million.
Investments in equity capital, on the other hand, registered net inflows of $1.764 billion during the period from $1.554 billion last year.
The bulk came from the United States, the Netherlands, Japan, the United Kingdom and Singapore.
The funds were mainly channeled to manufacturing, financial and insurance, real estate, wholesale and retail trade, and construction activities, the central bank said.