Foreign direct investment up 182% in June, says BSP

Foreign direct investment (FDI) in the Philippines nearly tripled in June from a year earlier due to a "bullish" outlook on the Philippine economy, the Bangko Sentral ng Pilipinas (BSP) said Monday.

The BSP said FDI expanded by 182.7 percent to $674 million from $238 million in the same comparable period.

This was the highest since foreign investment reached $874 million last April.

The latest figures brought the year-to-date FDI to $3.6 billion of net inflows, down 14 percent from $4.2 billion in the first six months of 2016.

Foreign investors continued to see the Philippine economy with a bullish outlook, the central bank noted.

"In part, the increase in FDI inflows during the month was due largely to the expansion in debt instruments to $674 million," it said.

The debts included intercompany borrowings of subsidiaries or affiliates in the Philippines from their principals.

"Equity capital placements in June 2017 came mostly from the United States, Japan, Taiwan, Singapore, and India," the BSP said.

Most of the funds were channeled into real estate; electricity, gas, steam and air conditioning supply; financial and insurance; manufacturing; and professional, scientific, and technical activities.

"The net withdrawals in equity capital negated the reinvestment of earnings of $72 million during the month," the BSP said.

University of Asia and the Pacific Dean Cid Terosa noted there was an increase in manufacturing during the period.

"It was expected because of unusually big investments in manufacturing and investments," he said.

While FDI is expected to continue expanding, it is not expected to be as big as the surge in June.

"It won't continue by this magnitude but FDI will continue to register higher year-on-year growth this year," Terosa. — Jon Viktor Cabuenas/VDS, GMA News