FDI breaches $5-B for the first time in Jan.-Oct. 

Foreign direct investments (FDI) more than doubled in October on the back of continued confidence in the Philippine economy, Bangko Sentral ng Pilipinas said Monday.

 

Net inflows in October totaled $444 million, up 102.7 percent from $219 million a year earlier, Bangko Sentral data showed.

 

For the 10-month period, FDIs rose 64.1 percent to $5.3 billion from $3.2 billion.

 

"The increase in FDI net inflows during the period was buoyed by favorable investor outlook on the Philippine economy on the back of sound macroeconomic fundamentals," the central bank noted.

 

This is the first time FDI net inflows breached $5 billion, Security Bank Corp. economist Patrick Ella told GMA News Online. "This is likely our strongest year in terms of FDI," he said.

 

However, the Philippines is still lagging compared with the peer countries in the region, according to the economist.

 

"We've been doing a lot on the macro front but the foreign ownership rules need to be revisited to make the country at par with neighbors in terms of FDI," Ella said. 

 

Investments in debt instruments expanded by 55.4 percent to $2.7 billion from $2.1 billion.

 

Net inflows in equity capital also climbed by 88.9 percent to $1.4 billion from $716 billion.

 

Most equity capital came from the United States, Hong Kong, Japan, Singapore and Taiwan and was channeled to the financial and insurance, manufacturing, real estate, wholesale and retail trade, and transportation and storage sectors.

 

Investment flows into debt instruments increased by 74 percent to $168 million from $96 million. – VS, GMA News