Foreign Direct Investments (FDI) Grew by 182.7% to US$674 Million in June 2017


The Philippines economy is indeed on the right track under the administratio of Pres. Rody Duterte as the Bangko Sentral ng Pilipinas (BSP) reported that Foreign Direct Investments (FDI) grew by 182.7 percent to US$674 million in June 2017 from US$238 million for the same month in 2016.



The three-fold increase of FDI, reflects the investors' continued bullish outlook on the Philippine economy.

In part, the increase in FDI inflows during the month was due largely to the expansion in debt instruments (or intercompany borrowings from foreign direct investors by their subsidiaries/affiliates in the Philippines) to US$674 million.

However, equity capital investments posted net withdrawals of US$72 million during the period as placements (US$113 million) were outpaced by withdrawals (US$185 million). 

Equity capital placements in June 2017 came mostly from the United States, Japan, Taiwan, Singapore, and India. These were channeled mainly to real estate; electricity, gas, steam and air conditioning supply; financial and insurance; manufacturing; and professional, scientific and technical activities.  The net withdrawals in equity capital negated the reinvestment of earnings of US$72 million during the month.

Based on the records presented by BSP, on a cumulative basis, FDI registered net inflows of US$3.6 billion in the first half of 2017.  This was 14 percent lower than the US$4.2 billion net inflows posted in the same period last year on account of the 90.3 percent decline in net equity capital to US$141 million from US$1.4 billion a year ago.

Equity capital infusions during the first semester were sourced mainly from the United States, Japan, Singapore, Hong Kong, and Taiwan.  These were invested mainly in real estate; financial and insurance; manufacturing; electricity, gas, steam and air conditioning supply; and wholesale and retail trade activities.  

Meanwhile, higher investments in debt instruments and reinvestment of earnings were registered in the first half of the year amounting to US$3 billion and US$416 million, respectively.

Source: PTV-4 / BSP PR


Foreign Direct Investments (FDI) Grew by 182.7% to US$674 Million in June 2017 Foreign Direct Investments (FDI) Grew by 182.7% to US$674 Million in June 2017 Reviewed by Phil Newsome on 9/14/2017 Rating: 5

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