BSP reports $162M in net FDI inflows
Foreign direct investment inflows to the country recovered in May as favorable macroeconomic fundamentals enhanced the risk appetite of investors.
FDIs posted a net inflow of $162 million in May, reversing the $31-million net outflow registered in the same month last year, the Bangko Sentral ng Pilipinas reported Wednesday.
In the first five months of this year, cumulative net inflow amounted to $714 million, rising by 15 percent from $619 million a year ago.
Gross inflows in the five-month period reached $767 million, while outflows amounted to only $53 million.
The BSP said investor sentiment on the Philippines improved given several positive economic indicators and the easing concerns on the global economy.
These indicators include a manageable increase in the prices of goods and services, a well-performing banking sector and the declining budget deficit of the government, the central bank said.
Article continues after this advertisement“The increase in FDI inflow reflects a favorable investor sentiment on account of the country’s strong macroeconomic fundamentals,” it said.
In the earlier months of the year, FDIs were registering net outflows, which monetary officials blamed on external factors—such as the natural disaster in Japan, the political unrest in the Middle East and North Africa, and the worrisome debt situation in the Euro zone.
