FDI inflows surge to $2.2 billion in April — BSP

Net inflows of foreign direct investments grew by nearly six times over in April from a year earlier, the Bangko Sentral ng Pilipinas (BSP) on Monday said, citing the “favorable investment climate” in the country.

According to the central bank, FDI — a key source of jobs and capital for the economy — logged a net inflow of $2.2 billion in April 2016, up from $382 million in the same month last year and from $364 million in March.

“The surge in FDI inflows is reflective of the favorable investment climate as the economy continued to post strong growth and show even better growth potentials,” the BSP said.

The bulk or $1.3 billion of the inflows was in the form of debt instruments — more than four times the $276 million year-on-year.

Net equity capital placements amounted to $285 million, driven by the increase in gross equity capital placements.

On the other hand, withdrawals were reported “low” at $13 million.

Most of the inflows came from Japan, the United States, the Netherlands, Germany, and Taiwan, which were then channeled mainly to financial and insurance, real estate, manufacturing, wholesale and retail trade, and administrative and support service activities.

The latest figures brought the FDI net inflows to $3.5 billion in the first months of the year, while reinvested earnings amounted to $255 million. — Jon Viktor Cabuenas/VDS, GMA News