Net inflows of foreign direct investments (FDI) jumped 11 percent and surpassed the $1-billion mark in the first two months of the year on strong investors’ confidence in the economy.
FDI—the investments brought by non-residents to the Philippines in hopes of a long-term yield—hit $1.05 billion as of end-February, or 11 percent higher than year-ago figures.
“Investment inflows continued as investors remain confident in the Philippine economy on the back of strong macroeconomic fundamentals,” the Central Bank said.
In February alone FDI hit $366 million, up 7 percent from $342 million in the same month last year.
By subcomponent, net placements in debt instruments increased 133.2 percent to $821 million, from $352 million in the same period last year.
Reinvestment of earnings for the first two months of the year, on the other hand, reached $137 million, or 3.3 percent higher than last year’s level.
Meanwhile, equity capital investments recorded net inflows of $93 million. This came about as equity capital placements reached $142 million, while withdrawals amounted to $49 million.
The equity capital placements in the first two months of the year came mostly from Japan, Hong Kong, the United States, Germany and Singapore.
The placements were largely invested in real estate; wholesale and retail trade; financial and insurance; information and communication; and manufacturing activities.