FDI up 1.6 % to USD 458 M in July 2015

MANILA, Oct. 12 (PNA) — Foreign direct investments (FDI) posted net inflows of USD 458 million in July 2015, up 1.6 percent from USD 451 million registered in the comparable period last year.

Net equity capital investments increased by 45.3 percent to USD 152 million on account of the USD 173 million rise in placements which exceeded withdrawals of US 21 million. The bulk of these equity capital placements came from Singapore, Hong Kong, the United States, Japan and the United Kingdom.

By economic activity, investments were mainly channeled to the financial and insurance, mining and quarrying, real estate, manufacturing, and wholesale and retail trade activities.

Financial and insurance activities captured almost half of the increase in total equity capital placements during the period, reflecting investors’ confidence in the country’s sound financial system. rose by 31.7 percent to USD 79 million. Meanwhile, non-residents’ investments in debt instruments, or intercompany borrowings, consisting mainly of loans extended by parent companies abroad to their local affiliates, were lower by 20.7 percent at USD 227 million from USD 286 million last year.

For the period January-July, FDI net inflows amounted to USD 2.5 billion, 35.2 percent lower than the USD 3.8 billion net inflows posted in the same period last year.

Net equity capital placements increased marginally by 1 percent to USD 805 million from USD 797 million. This was not enough, however, to offset the large decline in investments in debt instruments (by 51.6 percent) and reinvestment of earnings (by 12.7 percent).

Equity capital placements during the period, which amounted to USD 1 billion, came mostly from the United States, Singapore, Hong Kong, Japan, and Germany. These were channeled mainly to manufacturing, financial and insurance, real estate, electricity, gas, steam and air-conditioning supply and mining and quarrying activities. (PNA)