Foreign Direct Investment Skyrockets in the Philippines

Philippines SkyrocketsFinancial services, manufacturing, real estate, mining, wholesale, and retail in the Philippines all saw a surge of net foreign direct investments of nearly 80%.

Bangko Sentral ng Pilipinas (BSP) reports that the month of March showed an increase to US$476 million, from US$266 million in the same month last year.

The capital flowed in from the United States, Japan, Singapore, Hong Kong, and Taiwan.

Meanwhile, parent companies abroad lending via debt instruments issued by their local affiliates dropped 19%, to US$143 million, in March, from US$176 million in the same month last year. However, BSP brushed this aside stating, “This (continued lending) is an indication of sustained confidence in the country’s strong macroeconomic fundamentals.”

Reinvestment of profits climbed 4%, to US$54 million, in March, as foreign suitors apparently decided to leave their earnings in country for the “rosy” economic prospects.

Interestingly enough, many of these same players shied away from equity capital investments as in March there was a drop of 23%, to US$636 million.

For more on this, click here to jump over to The Philippine Star.