The Market Monitor Minding the Nation's Business
By Riza Lozada
Foreign direct investments (FDI) inflow rose to $6.22 billion in the first 10 months of last year, up 22.2 percent from $5.1 billion a year ago, government data released last week showed.
Bangko Sentral ng Pilipinas (BSP) figures showed the end-October 2016 net FDI was boosted by placements in debt instruments amounting to $3.94 billion, up 34.9 percent year-on-year.
Net equity capital rose 9.3 percent to $1.67 billion because of higher placements in real estate, manufacturing; wholesale and retail trade; electricity, gas, steam and air-conditioning supply; and human health and social work activities.
Most of these funds came from Japan, Singapore, US, Hong Kong and Taiwan.
On the other hand, reinvested earnings fell 5.2 percent to $605 million from the $637 million same period in 2015.
Meanwhile, FDIs last October alone fell 14.3 percent to $342 million from last September’s $469 million.
The drop in foreign investments was due to lower equity placements amounting to $84 million compared to month-ago’s $157 million. These came mostly from Germany, Taiwan, US, the Netherlands, and Cayman Islands.
Net placements in debt instruments was also lower at $225 million from month-ago’s $296 million.