MANILA, March 10 (PNA) — Foreign investors continue to believe in the Philippine economy’s strength as shown by the 20 percent growth in net foreign direct investment (FDI) inflow to the country in 2013.
Data released by the Bangko Sentral ng Pilipinas (BSP) Monday showed that net FDIs to the country last year reached USD 3.9 billion, higher than year-ago’s USD 3.2 billion and the central bank’s USD 2.1 billion target for the year.
Bulk of the investments were placed in debt instruments issued by affiliates of foreign companies as these totaled to USD 2.5 billion, way higher than the USD 391 million in 2012.
The central bank said the funds were used to finance the local affiliates’ operations and expansion bid as the economy continues to show resiliency amid negative external environment.
Equity placements posted a net of USD 664 million, down from the USD 2 billion in 2012.
Amid the lower net equity placements last year, total equity capital remains higher at USD 2.5 billion from the withdrawals of USD 1.8 billion.
These funds primarily came from Mexico, Japan, the United States, British Virgin Island and Singapore and were placed in manufacturing, water supply, sewerage, waste management and remediation, financial and insurance, real estate, and mining and quarrying. (PNA)