Net inflows of foreign direct investments grew 7 percent in February to $366 million from $342 million a year ago, on sustained investors confidence in the Philippine economy, the Bangko Sentral ng Pilipinas said Wednesday.
Data showed that on a month-on-month basis, the February net inflows were lower than $685 million registered in January 2017.
This brought net inflows in the first two months to $1.1 billion, up 11 percent from a year earlier.
Bangko Sentral said more than two-thirds of FDI net inflows in February were in the form of non-residents’ placements in debt instruments issued by local affiliates, which increased 160.7 percent.
Net equity capital infusion amounted to $45 million, as equity capital placements of $79 million more than offset the $33-million withdrawals.
The bulk or 84.3 percent of gross equity capital investments came from Japan, Hong Kong and the US. These were invested in wholesale and retail trade, real estate, manufacturing, financial and insurance and art entertainment and recreation activities.
Bangko Sentral Deputy Governor Diwa Guinigundo said the FDI net inflow target of $7 billion this year might be revised upward during the review of economic data this month. Last year, the figure hit a record $7.9 billion.
Guinigundo said the surge of FDIs in 2016 showed investors’ more confident attitude towards the Philippines and their decision to continue to invest here reflected the steady strong fundamentals of the economy.
Guinigundo expressed optimism that FDI inflows would not be affected by US President Donald Trump’s policies. The US is the biggest investor in the the country’s booming business process outsourcing industry which employs more than a million Filipinos.