FDI net inflows into Philippines up 41.5 pct in January

MANILA, April 12 (Xinhua) -- Foreign direct investment (FDI) net inflows into the Philippines grew 41.5 percent to reach 961 million U.S. dollars in January from 679 million U.S. dollars a year earlier, the Philippine central bank said on Monday.

Buildings are seen in Manila, the Philippines on Aug. 7, 2020. (Photo: Xinhua)

"The increase in FDI during the month was supported mainly by the 116 percent expansion in non-residents' net investment in debt instruments to 535 million U.S. dollars from 248 million U.S. dollars in the same month last year," the Bangko Sentral ng Pilipinas (BSP) said in a statement.

The BSP added that the increase "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."

Similarly, the BSP said non-residents' net investment in equity capital increased marginally by 0.5 percent to 351 million U.S. dollars from 350 million U.S. dollars in January 2020.

"This resulted following continued inflows from new placements, amounting to 362 million U.S. dollars in January 2021 from 374 million U.S. dollars last year, coupled with less withdrawals of 10 million U.S. dollars in January 2021 from 24 million U.S. dollars in January 2020," the BSP added.

During the period, the BSP said, equity capital placements emanated mainly from Singapore, Japan, and the Netherlands and were primarily channeled to financial and insurance, manufacturing, and professional, scientific, and technical industries.

Meanwhile, the BSP said reinvestment of earnings declined by 9.2 percent to 74 million U.S. dollars from 82 million U.S. dollars in January 2020.