Bangko Sentral expects FDIs to top $10 billion in 2018

The Bangko Sentral ng Pilipinas said Monday it expects a record net inflow of foreign direct investments this year and surpass the $10-billion net inflow last year.

It said FDI net inflow this year could reach $10.4 billion, higher than the actual $10 billion posted in 2017. It is also higher than the forecast of $9.2 billion made in May this year.

FDI net inflow in the first three quarters climbed 24.2 percent to $8 billion from $6.5 billion a year ago, as investors continued to consider the Philippines as one of the best places to invest in.

The BSP said in a statement that the double-digit expansion in net FDI for the period was on account of the increases registered in all FDI components. 

“Investment inflows continued, buoyed by investor confidence in the Philippine economy on the back of strong macroeconomic fundamentals and high growth prospects,” the regulator said.

Investments in debt instruments reached $5.5 billion, an increase of 19.6 percent from the $4.6 billion recorded in the comparable period in 2017. 

Net equity capital investments also climbed 52.1 percent to $1.9 billion from $1.2 billion a year ago. Bulk of the equity capital placements during the period emanated from Singapore, Hong Kong, the United States, Japan, and China. 

These investments were channeled largely to manufacturing, financial and insurance, real estate, arts, entertainment and recreation and electricity, gas, steam, and air-conditioning supply activities. 

Reinvestment of earnings amounted to $614 million during the period. 

Net FDI in September alone declined to $569 million from the $807 million registered in the same month last year. 

Equity capital infusions originated largely from the United States, Japan, Macau, Hong Kong, and China. These investments were channeled mostly to real estate, manufacturing and electricity, gas, steam, and air-conditioning supply activities. 

Finance Secretary Carlos Dominguez III earlier said President Rodrigo Duterte made the country a safer place for investors, with his campaign against corruption and criminality leading to a decrease in

crime volume by 21.86 percent since the start of his administration.

Dominguez also said the increasing volume of FDIs supported the Duterte administration’s efforts to shift the economy from consumption- to investments-led growth, which would then help create decent, well-paying jobs for the country’s young, well-trained Filipinos entering the workforce in the coming years.

American financial and business news website Business Insider put the Philippines on the top of the list of

20 best countries to invest in this year.

Topics: Bangko Sentral ng Pilipinas , net inflow , foreign direct investments , Carlos Dominguez III
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