MANILA -After three straight months of falling steeply, net inflows of foreign direct investments (FDI) into the Philippines grew by 13 percent to $1.05 billion in February from $926 million in the same month last year.
The FDI data represent capital that actually moved, instead of avowed commitment or planned investments, which may or may not be realized fully.
The Bangko Sentral ng Pilipinas (BSP) said in a statement the increase in February was due to greater net investments from nonresidents in debt instruments.
On the other hand, net equity capital placements as well as reinvestment of earnings decreased.
The BSP said “foreign investors remained cautious amid persistent and broadening global inflation.”
February results represented a recovery in growth momentum after double-digit decreases in the previous three months—35 percent in November, 76 percent in December and 46 percent in January.
In February, there was a 19-percent rise—likewise after three months of decline—in nonresidents’ net investments in debt instruments, which reached $910 million from $762 million a year earlier.
However, net equity capital other than the reinvestment of earnings fell four the fourth month in a row, this time by 24 percent to $74 million from $97 million.
Also, reinvestment of capital decreased by 6.5 percent to $62 billion from $66 million. This happened after five straight months of positive growth.
Most of the equity capital placements in January came from Japan, the United States and the Cayman Islands.
These were invested mainly in the industries of manufacturing; real estate; electricity, gas steam and air conditioning supply; and financial and insurance industries. INQ