MANILA – Foreign direct investments (FDIs) rose to a record high as the country continues to attract more capital from abroad, according to the central bank.
A net inflow in FDI reaching a total of $436 million in July allowed the country to remain as the strongest performer in Southeast Asia.
“This reflected continued favorable sentiment on the Philippine economy on the back of the country’s strong macroeconomic fundamentals,” the Bangko Sentral ng Pilipinas (BSP) said in a statement.
FDI level rose to $4.01 billion, a figure higher than the $2.57 billion recorded in the same seven-month period of 2013, year-to-date.
Foreign direct investments are generated from multinational companies’ reinvested earnings in the country which is translated into the construction of new manufacturing and service facilities.
The investment directly contributes to job generation, therefore affecting the employment status of the country.
A data from the BSP indicated that the investment increase was observed across the board with the net equity capital surging by more than tenfold at $104 million.
This figure is higher than the $10 million in the same month last year.
The net inflows of equity capital also increased on back of the 87.8-percent year-on-year increase in equity capital placements to $120 million.
Most of the equity capital investments in the said period were generated largely from the United States, Sweden, the Netherlands, Taiwan and Switzerland.
These investments were mainly channelled to financial and insurance; real estate; wholesale and retail trade; transportation and storage; and agriculture, forestry and fishing activities.
Moreover, the reinvestment of earnings increasing at $58 million in July, is also 11.5 percent higher than the $52 million recorded in the same month last year.