Foreign direct investments plunge 83% in August
MANILA, Philippines - The global economic slowdown has dampened August foreign direct investments, an indicator of investor confidence and traditional sources of jobs.
Data from the Bangko Sentral ng Pilipinas showed that the net inflow of foreign direct investments (FDI) plunged 83% to $13 million in August from from $76 million a year ago.
"This reflected investors’ relatively cautious stance due to weak global economic prospects and financial strains in the advanced economies," the BSP said in a statement on Monday, November 12.
Key sources of FDI in August were the United States, Australia, Netherlands, United Kingdom, Japan and Bermuda.
This brought the cumulative FDI in the first 9 months of 2012 to $1.038 billion, 61% higher than $644 million a year ago.
FDI, hot money that go to the capital markets, and remittances from Filipinos working abroad have kept the Philippines' balance of payments in surplus. - Rappler.com