FDI net inflows up 41.5% in January —BSP data

Foreign direct investment (FDI) net inflows posted a 41.5% growth in January with the gradual reopening of the economy, data released by the Bangko Sentral ng Pilipinas (BSP) on Monday revealed.

Central bank data showed an FDI net inflow of $961 million in January versus $679 million the same month last year.

The BSP attributed the year-on-year growth on the 116% expansion in debt instruments to $535 million from $248 million in January 2020.

"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," it said.

The Philippines in October eased restrictions to general community quarantine (GCQ). This increased the allowed capacity in public transport and establishments, as well as eased the age restrictions that were in place.

However, restrictions were tightened anew to the strictest enhanced community quarantine (ECQ) for two weeks from March 29 to April 11, following a surge in COVID-19 cases. It was lowered by a notch to modified enhanced community quarantine (MECQ) on April 12 and will last until the end of the month.

The net investment of foreign investors on equity capital in January rose 0.5% to $351 million. Inflows from new placements amounted to $362 million with withdrawals for the month down year-on-year to $10 million from $24 million in 2020.

Equity capital placements for the month came mainly from Singapore, Japan, and the Netherlands. These were then channeled into financial and insurance, manufacturing, and progressional, scientific, and technical industries.

The same data released by the BSP showed that the reinvestment of earnings declined by 9.2% to $74 million from $82 million the same month last year.
—KBK, GMA News