Philippines draws 'strong growth' in foreign direct investments for January 2021: BSP

ABS-CBN News

Posted at Apr 12 2021 11:16 AM

MANILA - The Philippines booked a total $961 million in net inflows of foreign direct investments (FDI) in January 2021, higher by 41.5 percent compared to the same period last year, the Bangko Sentral ng Pilipinas said Monday. 

Net inflows of FDIs in January 2020 was at $679 million, the BSP said in a statement.

"This development reflects the investors’ optimism at the start of the year due in turn to the gradual reopening of the economy under the “new normal” condition, easing of lockdown measures, and positive news about the rollout of COVID-19 vaccines," the BSP said. 

Despite being among the last in the region, the Philippines has started inoculating its population in March. It aims to vaccinate at least 70 million of its over 100 million population.

Non-residents' net investments in debt instruments grew 116 percent to $545 million from $248 in the same period last year, the central bank said.

Non-residents' net investment in equity capital also rose by 0.5 percent to $351 million from $350 million, it said.

Inflows from new placements amounted to $362 million in January 2021. Equity capital placements during the period "emanated largely" from Singapore, Japan and the Netherlands and are channeled to financial and insurance, manufacturing, professional, scientific and technical industries, the BSP said. 

Reinvestment of earnings, however, declined by 9.2 percent to $74 million from $82 million in January 2020, data showed.

Economic managers earlier predicted a positive growth in the second quarter. However, the prospects were made before the ECQ and then the MECQ restrictions were imposed due to the recent surge in COVID-19 cases.

The Philippine economy contracted by -9.6 percent in 2020, its worst since the end of World War 2.

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