Foreign investments soared by 55% in Nov.

MANILA, Philippines—Lasting investments by foreigners in the Philippines rose by more than 50 percent in November on the back of sustained confidence in the country’s economy.

Data from the central bank showed that foreign direct investments (FDIs) rose by 54.9 percent in November to $286 million. This was despite the expected slowdown in some areas due to the devastation caused by Super Typhoon Yolanda.

This brought the year-to-date total to $3.65 billion, better than the $2.67 billion in the same period the year before.

“FDI inflows remained robust on the back of sustained investor confidence in the growth prospects of the economy,” the Bangko Sentral ng Pilipinas (BSP) said in a statement.

Lending of multinationals to their affiliates in the Philippines accounted for the highest portion of FDIs that flowed into the country in November. These are considered investments since proceeds from these loans will be used to fund the expansion of the multinationals’ businesses in the country.

Investments in the form of debt instruments reached $225 million for the month, or more than double the year-ago level.

In the meantime, significant investments by foreigners in local companies reversed to a net inflow of $7 million from a net outflow of $21 million in November 2013. Gross equity placements of $94 million more than offset withdrawals of $87 million, the BSP said.

While investments in local companies, particularly publicly listed firms, are usually counted as short-term portfolio investments, significant placements by foreign companies in corporations they already own are counted as FDIs.

Major sources of these equity investments were the United States, Japan, the United Kingdom, Hong Kong and Singapore.

Investors from these countries made placements mainly in the manufacturing, electricity, gas, steam and air-conditioning supply, real estate, mining and quarrying, and wholesale and retail trade sectors.

In the meantime, a steep drop in foreign companies’ earnings being reinvested in the Philippines was reported in November. Data from the BSP showed that the net reinvested earnings stood at $55 million in November, down from $98 million a year ago.