The countrys foreign direct investment (FDI) net inflows as of end-April increased by 56.3 percent year-on-year to $3.056 billion from $1.955 billion, fueled by more investments in debt instruments, according to the Bangko Sentral ng Pilipinas (BSP).
For the month of April only, net FDI rose by 114.4 percent year-on-year to $679 million versus $317 million in 2020.
The BSPs FDI registrations cover actual investment inflows in the form of equity capital, reinvestment of earnings, and borrowings.
The BSP noted that the higher cumulative FDI net inflows was due to the improvements in all components, led by non-residents net investments in debt instruments. This increased by 115.2 percent to $1.930 billion from $897 million.
The end-April net placements of equity capital went up by 8.1 percent to $818 million from $756 million while reinvestment of earnings amounted to $307 million, just two percent more from $301 million in 2020.
The equity capital placements was only 0.2 percent more at $936 million from $934 million but equity capital withdrawals declined to $118 million from $178 million.
For the January to April period, investors from Singapore, Japan and the US registered the most investments. These funds were placed in these sectors: electricity, gas, steam, and air-conditioning; financial and insurance; and manufacturing industries.
The BSP said FDI net inflows in April, on the other hand increased on the back of positive foreign investor sentiment on the countrys macroeconomic fundamentals and strong growth prospects.
FDI net inflows during the month increased due mainly to the 121.2 percent expansion in non-residents net investments in debt instruments to $500 million from $226 million in April 2020, added the BSP.
Also for April only, non-residents net investments in equity capital surged by 3,164 percent to $97 million from just $3 million last year. This developed as equity capital placements increased by 131 percent to $108 million (from $47 million), while withdrawals decreased by 75.1 percent to $11 million (from $44 million), the BSP noted.
The continued rise in net investments in equity capital in April also resulted in a cumulative increase of 8.1 percent from a 4.3 percent contraction in March, with the level reaching $818 million, said the BSP.
The top three country sources for equity capital was Japan, the US, and Singapore, and these funds were invested in the manufacturing and real estate sectors.
Reinvestment of earnings, in the meantime, dropped by 6.2 percent to $82 million from $88 million last year.
The BSP expects FDI net inflows to reach $7.8 billion by end-2021.
In 2020, FDI net inflows fell by 24.6 percent to $6.54 billion from 2019s $8.67 billion.
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