BSP sees sustained FDI growth this year
MANILA, Philippines - The Bangko Sentral ng Pilipinas is optimistic the country will be able to sustain the high level of foreign direct investments, as seen in January.
"The momentum can be sustained... I don't see any reason why not," BSP Deputy Governor Diwa C. Guinigundo said. "For January, that was actually one of those challenging times when we experienced portfolio outflows because of the US Fed's action but nonetheless, the more durable and more permanent type of investments came in."
Net foreign direct investments in January rose 5.3% from a year earlier to $1.03 billion, the highest since January 2012 when it recorded a net inflow of $1.06 billion. The rise in net FDI was mainly due to a surge in investments in debt instruments, with additional boost from equity capital.
"Moving forward, we believe that the economy will continue to grow and many of the macroeconomic stories will be the same, if not improved overtime... So we expect that the same confidence will be maintained and our foreign direct investors will continue to come in," Guinigundo said.
The BSP forecast net FDI inflows to hit $2.6 billion this year, 33% lower than the $3.86 billion recorded in 2013.