MANILA – The Bangko Sentral ng Pilipinas (BSP) on Monday reported that foreign direct investments (FDI) reached $473 million in May, a significant jump from the $62 million net outflow posted in May last year.
BSP said the turnaround was due to the sustained confidence of investors in the domestic economy.
“The improvement in FDI during the month was underpinned by the increases registered across major components,” BSP said.
There was also a significant increase in investments of foreign firms in papers issued by their local units in May, to $338 million from $12 million in May 2013.
Equity capital investments also jumped to $73 million in May this year from a $117-million net outflow in the same month last year.
The BSP said the funds--which mostly came from the United States, Singapore, the United Kingdom, Japan, Germany--were put into financial and insurance, real estate, manufacturing, wholesale and retail trade, and professional, scientific and technical activities.
It also said that in the first 5 months of the year, net FDI inflows grew by 34 percent to $2.9 billion from $2.2 billion in the same period last year, which reflected “investors’ confidence in the country’s sound macroeconomic fundamentals.”
However, equity capital investments went down 9 percent to $708 million, as of May, from $775 million.
Reinvested earnings also decreased to $327 million from $328 million.
The BSP said that most of the equity capital placements came from the United States, Hong Kong, Japan, Singapore, and Taiwan and were invested in financial and insurance; manufacturing; mining and quarrying activities; real estate; and wholesale and retail trade.
The central bank expects net FDI inflows to reach $1 billion this year.