Net FDIs fall 45% in January — Bangko Sentral

Foreign direct investments to the Philippines went down by 45 percent in January, from $1.05 billion recorded in the same month last year to $576 million this year, the Bangko Sentral ng Pilipinas (BSP) reported Wednesday. The drop, however, came before the Philippines got a credit rating upgrade from a key international credit-rating agency in March. The BSP said the drop came amid lingering problems of the global economy, which was weighed down by the lackluster growth of the United States, the crisis in the euro zone and deflation in Japan, among others. The government has set a projection for net inflow of FDIs to hit $2.2 billion this year, up from last year’s $2 billion. Last month, Fitch Ratings gave the Philippines its first investment grade when it lifted the country’s credit score from BB+ to BBB-, or from one notch below investment grade to the minimum investment grade. Monetary officials expect the country to register higher FDIs in the months ahead as a result of the credit rating upgrade. Fitch cited the country’s improving macroeconomic fundamentals in making the decision. These include the country’s robust growth rate of 6.6 percent last year, better than the government’s target of 5 to 6 percent. — KBK, GMA News