MANILA – Official reports disclosed on Monday showed that foreign direct investments (FDI) in the country were strong October of last year. This resulted to more jobs for Filipinos as more businessmen from across the world were attracted by the country’s strong economic status and performance.
Thus, FDIs covering the period of January to October were the strongest last year.
“The increase in FDI net inflows during the period was buoyed by favorable investor outlook on the Philippine economy on the back of sound macroeconomic fundamentals,” said the Bangko Sentral ng Pilipinas (BSP).
Last year in October, the FDI was doubled at $444 million from the $219 million same period in 2013. This gave the county $5.3 billion, more than the Philippines has ever had in a single year.
Majority of the placements came from via equity capital that amounted to $213 million, triple than the $73 recorded in 2013. Investors came from the following countries: United States, Germany, Singapore, United Kingdom and Japan.
Some of the industries that gained from the said investments were manufacturing, real estate, financial and insurance, wholesale and retail trade, and services.
Meanwhile, loans approved by the multinationals for their local subsidiaries increased by 74 percent to $168 million, while earnings were up by 28.1 percent to $63 million.
Direct investments are usually considered as a good point of reference in terms of an economy’s success.
Since these investments result to business expansion, more jobs are generated thanks to FDIs.