FDI net inflow continues in July

ABS-CBN News

Posted at Oct 12 2010 11:05 PM | Updated as of Oct 13 2010 09:06 PM

MANILA, Philippines - Foreign direct investments (FDI) recorded a net inflow of $222 million in July, 41.1% lower than the net inflow of $377 million a year ago.

The Bangko Sentral ng Pilipinas said, however, the sustained inflow of FDI into the country reflects "positive investor sentiment on the back of stronger growth momentum, expectations of manageable inflation for the rest of the year, and healthy external payments dynamics."

"Positive balances were recorded across all the categories of FDI during the month in review," it added.

For the first 7 months of the year, the FDI net inflow amounted to $954 million, against $1.65 billion during the same period of 2009.

Equity capital registered a net inflow of $141 million in the January to July, 92% lower than a year ago.

Top investors in the 7-month period came from the United States, Switzerland, Japan, the Netherlands, Singapore, Ireland and Hong Kong.

FDI, portfolio inflows, and remittances from Filipinos working overseas help keep the country's balance of payments (BOP) in surplus.

The central bank has forecast a net FDI inflow of $2 billion this year, up 5.3% from $1.9 billion in 2009.

It expects the 2010 BOP surplus to hit $3.7 billion, higher than an initial estimate of $3.2 billion. The Philippines' BOP was in surplus of nearly $5.3 billion in 2009, the biggest in 2 years. With a report from Reuters