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Friday, March 29, 2024

Foreign investments increase 13% to $685m

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Net inflow of foreign direct investments increased 13.2 percent in January to $685 million from $605 million a year ago, as investors remain optimistic on the Philippine economy, Bangko Sentral ng Pilipinas said Monday.

The January net inflow was also higher than the $669-million net inflow posted in December 2016.

“This developed as investors remained optimistic on the growth potential of the economy backed by strong macroeconomic fundamentals,” Bangko Sentral said in a statement.

Non-resident investments in debt instruments grew 122.6 percent to $566 million from the year-ago level of $254 million. Non-residents’ net equity capital placements dropped 82.8 percent with the decline in fresh equity capital infusions.

Placements in January came mostly from Germany, Singapore, Hong Kong, the US and Japan.

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Bangko Sentral Deputy Governor Diwa Guinigundo earlier said the FDI net inflow target of $7 billion this year might be revised upward after the 2016 figure reached a record $7.9 billion.

Guinigundo said the surge of FDI last year showed investors’ more confident attitude towards the Philippines and their decision to continue to invest here reflected the steady strong fundamentals of the economy.

He said looking at the way the economy and business policies of US President Donald Trump, it was clear that no policies were issued yet to restrict the entry of American investors in the Philippines.

Guinigundo expressed optimism that FDI inflows would not be affected by Trump’s policies, as the business process outsourcing industry remained one of the growth drivers of the economy.

The FDI net inflow of $7.9 billion last year surpassed the target of $6.7 billion. The 2016 figure was also 40.7 percent higher than the year-ago level of $5.72 billion.

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