NET inflow of foreign direct investments in 2016 reached $7.9 billion, surpassing the target of $6.7 billion, on investors’ sustained confidence on the Philippine economy, Bangko Sentral ng Pilipinas said Friday.
The 2016 figure was also 40.7 percent higher than a year-ago level of $5.72 billion.
FDI net inflow in December amounted to $669 million, more than double the $272 million recorded in the same month in 2015.
“More than half (or US$415 million) of the net inflows during the month were non-resident affiliates’ net placements in debt instruments issued by resident affiliates (or intercompany borrowings),” Bangko Sentral said.
Net equity capital infusion reached $206 million, as equity capital placements of $294 million more than offset the $88 million withdrawals. Equity capital placements came mostly from Hong Kong, Japan, the United States, Singapore and Belgium.
These were channeled mainly in arts, entertainment and recreation; financial and insurance; manufacturing; real estate; and professional, scientific and technical activities. Meanwhile, reinvestment of earnings amounted to $47 million during the month.
“FDI inflows remained robust, supported by strong investors’ confidence in the country’s solid macroeconomic fundamentals,” the central bank said.
Net availment of debt instruments rose 68.6 percent to $5.2 billion from $3.1 billion in 2015. Moreover, equity capital investments posted net inflows of $2 billion, 12.1 percent higher than $1.8 billion recorded last year.
Placements of $2.7 billion outweighed withdrawals of US$643 million. Equity capital placements originated mainly from Japan, Hong Kong, Singapore, the United States, and Taiwan. They were infused largely to financial and insurance; arts, entertainment and recreation; manufacturing; real estate; and construction activities. Reinvestment of earnings declined 4.9 percent to $710 million during the year.