FDI inflows up 13.2% in Jan

MANILA, Philippines - Foreign direct investment (FDI) inflows recorded a double-digit growth of 13.2 percent in January as investors remained optimistic on the growth potential of the Philippines, the Bangko Sentral ng Pilipinas (BSP) reported yesterday.

Net FDI inflows reached $685 million in January, $80 million higher than the $605 million booked in the same month last year.

“Investors remain optimistic on the growth potential of the economy backed by strong macroeconomic fundamentals,” the BSP said.

Equity capital infusion came mostly from Germany, Singapore, Hong Kong, the US and Japan. The funds were invested mainly in electricity, gas, steam and airconditioning supply; construction; wholesale and retail trade; administrative and support services; as well as financial and insurance.

On the other hand, the central bank said non-residents’ investments in debt instruments or lending by parent firms abroad to their local affiliates in the Philippines to fund existing operations and expansion soared 122.6 percent to $566 million from $254 million.

The BSP sees FDI inflows reaching $7 billion this year as the Duterte administration committed to ramp up infrastructure spending.

Last year, net FDI inflows zoomed 40 percent to a new record level of $7.9 billion from $5.64 billion in 2015.

The full-year inflow exceeded the full-year target of $6.7 billion set by monetary authorities.