FDI soars 66% to record $6.2 B; Phl’s robust growth, rosy prospects continue to attract investors

MANILA, Philippines - Foreign direct investments climbed 66 percent to a record high of $6.201 billion in 2014 from $3.737 billion in 2013 as the country’s robust economic growth and rosy prospects continue to attract investors, the Bangko Sentral ng Pilipinas reported yesterday.

The figure exceeded the central bank’s target of $4.4 billion and double the 2013 performance.

“FDI inflows remained robust, buoyed by strong investors’ confidence in the country’s solid macroeconomic fundamentals,” the BSP said.

The economy grew by 6.1 percent in 2014, slower than the 7.2 percent growth in 2013. This was also short of the government’s 6.5 to 7.5 percent target, but it was the second fastest in Asia during the period.

For this year and the next, the government hopes to grow the economy by seven to eight percent.

Placements in debt instruments or loans made by local units from their parent firms accounted for the bulk of total FDIs at $3.347 billion last year, 26 percent higher than the $2.654 billion in 2013.

Equity capital or fresh investments made by foreign firms in their Philippine subsidiaries and affiliates meanwhile more than tripled to $2.035 billion from $664 million.

These funds mainly came from the United States, Hong Kong, Singapore, Japan, and the United Kingdom, the BSP said. They were put into financial and insurance, manufacturing, real estate, mining and quarrying, and wholesale and retail trade activities.

At the same time, reinvested earnings almost doubled to $819 million in 2014 from $420 million a year prior.