Net FDI misses target and drops to two-year low in Philippines
At $9.802 billion - short of the central bank’s $10.4-billion goal and the lowest since 2016’s $7.933 billion - net inflows were down 4.4 percent from 2017’s $10.256 billion.
An analyst called the result “decent” but said slower economic growth and uncertainties over the government’s tax reform program could have been limiting factors.
Broken down, net investments of equity capital recorded the biggest fall of 33.3 percent even as the total remained positive at $2.267 billion, albeit lower than 2017’s $3.398 billion.
The BSP, in a statement, said equity capital infusions last year came mainly from Singapore, the United States, Hong Kong, Japan and China, and were invested in manufacturing; financial and insurance; real estate; electricity, gas, steam and air-conditioning supply; and arts, entertainment and recreation.
Reinvestments of earnings, meanwhile, dipped by 0.4 percent to $859 million, from $863 million in 2017, while net availments of debt instruments rose by 11.3 percent to $6.676 billion from $5.996 billion. ■