MANILA, Philippines - Foreign direct investments (FDI) rose 20 percent in 2013, the Bangko Sentral ng Pilipinas (BSP) said on Monday.
Net FDI inflows reached $3.86 billion in 2013, 20% higher than the $3.215 billion recorded in 2012. This was significantly more than the $2.1-billion assumption for 2013.
"The increase in FDI during the year was buoyed by investors' confidence on the country's sound macroeconoimc fundamentals," it said.
In 2013, the Philippine economy grew by 7.2%, one of the fastest growing in Asia.
The BSP said FDI inflows in 2013 were driven by placements in debt instruments issued by local affiliates, which skyrocketed to $2.46 billion, 538.3% higher than $391 million in 2012.
"This developed as parent companies abroad continued to lent to their local affiliates to fund existing operations and expansion of their businesses in the country," it said.
In December alone, FDI inflows fell 18.5% to $180 million from $221 million during the same month in 2012.
For 2014, the BSP expects a net FDI inflow of $2.6 billion.
Meanwhile, the BSP said net equity capital fell 66.9% to $664 million in 2013, from $2.006 billion in 2012. Reinvested earnings dropped 14.4% to $701 million in 2013 from $819 million a year ago.
The BSP said gross equity capital placements mostly came from Mexico, Japan, United States, British Virgin Islands, and Singapore.