NET inflows of foreign direct investments in the first 10 months of 2016 increased 22 percent to $6.2 billion from $5.1 billion a year ago on sustained confidence of investors on the country’s strong macroeconomic fundamentals, Bangko Sentral ng Pilipinas said Tuesday.
Data showed that the year-to-date figure was inching closer to the recently-revised net inflow target for 2016 of $6.7 billion.
“Investment inflows continued amid investors’ confidence in the resilience of the economy, backed by sound macroeconomic fundamentals,” Bangko Sentral said in a statement.
Nearly two-thirds of net inflows were in the form of availments of debt instruments by local affiliates, which increased by 34.9 percent to $3.9 billion from $2.9 billion a year ago. Net equity capital grew 9.3 percent to $1.7 billion.
The bulk of gross equity capital placements came mainly from Japan, Singapore, the United States, Hong Kong and Taiwan. These were channeled to real estate, manufacturing, wholesale and retail trade, electricity, gas, steam and air-conditioning supply, and human health and social work activities.
Net inflows in October yielded $342 million but lower than the $399 million a year ago. The October figure was also lower than the net inflow of $469 million in September. President Rodrigo Duterte announced his independent foreign policy in October which, experts said, might cause investors to shy away from the Philippines.
Net availments of debt instruments amounted to $225 million, down 20.3 percent from the $282 million a year ago. Net equity capital investments increased 10.2 percent to $60 million as gross equity capital placements of $84 million exceeded withdrawals of $24 million.
Gross equity capital placements in October came mainly from Germany, Taiwan, the US, the Netherlands, and Cayman Islands. These were infused in financial and insurance, manufacturing, real estate, construction, and accommodation and food service activities.