ASEAN KEY DESTINATIONS
2017 foreign direct investment hit $10B in net inflows
Investments by foreign companies or individuals in the Philippines posted a dip last December, but expanded to a record high for the full-year 2017, the Bangko Sentral ng Pilipinas (BSP) reported.
Data released by the central bank on Monday showed foreign direct investment (FDI) reached $699 million in December 2017, down 9 percent from $768 million a year earlier.
“This was lower, however, by 9 percent from the level recorded a year ago due largely to the 19.1-percent drop in net investments in debt instruments to $335 million,” the central bank said.
However, net inflows totaled $10.049 billion in 2017, up 21.4 percent from the previous record high of $8.280 billion in 2016.
“Investors continue to view the country as a favorable investment destination on the back of the country’s sound macroeconomic fundamentals and growth prospects,” the BSP said.
Net equity capital investments expanded by 25.9 percent to $3.3 billion. Gross placements during the year amounted to $3.7 billion, exceeding withdrawals by $479 million.
Most of the placements came from the Netherlands, Singapore, the United States, Japan, and Hong Kong.
These were invested in gas, steam, and air-conditioning supply; manufacturing; real estate; construction; and wholesale and retail trade.
University of Asia and the Pacific School of Economics Dean Cid Terosa noted the impact of macroeconomic fundamentals on foreign investments.
“Because of the splendid growth performance of the economy, low inflation environment, and strong macroeconomic fundamentals,” he told GMA News Online.
The Philippine economy grew by 6.7 percent last year, and recorded an average inflation rate of 3.2 percen
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