FDIs jumped 57% in May

The net inflow of job-creating foreign direct investments (FDI) jumped 57 percent year-on-year to $572 million in May but the five-month total fell by almost a fourth due to a high base last year, Bangko Sentral ng Pilipinas data showed.

The FDI registered in May grew from $364 million a year ago, “driven by continued positive outlook on the Philippine economy buoyed by strong macroeconomic fundamentals,” the BSP said in a statement.

However, foreign investments in the first five months dropped 23.8 percent to $3 billion from $3.946 billion last year.

To recall, the $2.244-billion net FDI inflow posted in April last year was the largest-ever monthly figure, hence the high base.

In May alone, all FDI posted net inflows, the BSP said.

Gross equity capital placements reached $83 million during the month, exceeding the $40 million in withdrawals. Net equity capital investments, however, fell 45.6 percent to $43 million from $79 million.

The equity capital generated in May was mainly invested in electricity, gas, steam and air-conditioning supply; financial and insurance; manufacturing; real estate, and the wholesale and retail trade sectors.

The bulk of the equity capital investments in May came from Hong Kong, Japan, Malaysia, Singapore and the United States.

Investments in debt instruments, composed of intercompany borrowings or lending between foreign direct investors and their local affiliates or subsidiaries, climbed 108.3 percent in May to $459 million from a year ago’s $220 million.

Reinvestment of earnings grew 7.8 percent to $71 million from last year’s $65 million.

From January to May, net equity other than reinvestment of earnings slid by a faster 85.4 percent to $213 million from $1.454 billion last year.

The five-month equity capital placements mostly came from Germany, Hong Kong, Japan, Singapore and the US.

The activities that received most of the investments in the first five months were the following: electricity, gas, steam and air-conditioning supply; financial and insurance; manufacturing; real estate; and wholesale and retail trade.

The BSP expects FDI to hit $8 billion this year.