FDI Reaches $382M Net Inflows in April 2015

Manila—(PHStocks)—Bangko Sentral ng Pilipinas (BSP)—Foreign direct investments (FDI) continued to post net inflows amounting to $382 million in April 2015, as all FDI components remained in positive territory during the month. However, this was 43 percent lower than the $671 million level a year ago due mainly to the decline in non-residents’ net placements in debt instruments.

By FDI component, net equity capital investments reached $25 million—representing a 120.8 percent increase from $11 million recorded in April 2014—as placements of $39 million exceeded withdrawals of $14 million during the month. Equity capital placements emanated largely from the United States, the United Kingdom, Hong Kong, Germany, and Luxembourg and were channeled mainly to real estate; manufacturing; administrative and support service; financial and insurance; and wholesale and retail trade activities.

Similarly, reinvestment of earnings amounted to $81 million, up by 3.4 percent from $78 million recorded a year ago. Meanwhile, net placements by non-residents in debt instruments issued by their local affiliates settled at $276 million in April, lower by 52.5 percent relative to the level posted during the same month last year.

On a year-to-date basis, FDI flows for the January-April 2015 period likewise remained positive at $1.2 billion.   Nonetheless, this represented a 48.3 percent decline relative to $2.4 billion recorded a year ago. By FDI component, net equity capital investments reached $279 million as placements of $369 million more than offset withdrawals of $90 million during the period. Equity capital placements during the first four months of the year were sourced mainly from the United States, Japan, Singapore, the United Kingdom, and Spain. These were channeled primarily to manufacturing; real estate; electricity, gas, steam and air conditioning supply; financial and insurance; and wholesale and retail trade activities.

Moreover, reinvestment of earnings amounted to $266 million, albeit lower by 20.4 percent than $334 million posted in the comparable period last year. Meanwhile, non-residents’ net investments in debt instruments reached $688 million in the first four months of 2015.

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