Net FDI up by 51%, says BSP
Manila (13 April) -- Recent data from Bangko Sentral Ng Pilipinas (BSP) showed that net Foreign Direct investment (FDI) rose by 51 percent to $357 million in January from a year ago.
The BSP attributed the growth in FDI for the month mainly to the net inflows from the reinvested earnings account which amounted to US$220 million, from only US$2 million last year, as foreign banks opted to retain their earnings in their local branches given the continued positive economic prospects.
In its press report the BSP identified United States and Japan as the major sources of foreign direct investment flows in January.
Net equity capital inflows grew by almost 70 percent in January to US$70 million compared to the year-ago level, with fresh capital infusion in long-term investments reaching US$129 million.
Industries which benefited most from the net equity capital inflows, according to the BSP, include manufacturing, services, real estate, financial intermediation and construction.
BSP said FDI flows are expected to remain positive in 2007 with investors taking advantage of the country's improving investment climate. (PIA) [top]