MANILA, Philippines– Investor confidence in the Philippine economy remained strong as foreign investments more than doubled in May.

The Bangko Sentral ng Pilipinas (BSP) reported foreign direct investments (FDI) net inflows soared 142.9% to $1.6 billion from $677 million recorded in 2017. The figure is also higher than April which hit $1.03 billion.

From January to May, FDI net inflows grew by 49% to $4.8 billion compared to the same period $3.3 billion last year.

“About 80% of FDI net inflows were in the form of non-residents’ investments in debt instruments issued by local affiliates (intercompany borrowings), which grew by 135.7 percent to US$1.3 billion from US$564 million in 2017,” the BSP said.

An FDI is a type of investment where foreign companies or individuals actually set business operations or acquire business assets in the Philippines.

The central bank also reported that net equity capital investments grew by 469.1% to $1.4 billion year-to-date.  Gross equity capital placements grew to $1.5 billion, while withdrawals amounted to $139 million.

Equity capital placements during the period emanated mainly from Singapore, the United Kingdom, Germany, the United States and Japan.

These were channeled largely to manufacturing, real estate, electricity, gas, steam and air conditioning supply, financial and insurance, and professional, scientific and technical activities.

The BSP forecasts full-year FDI to reach $9.2 billion.

The country’s gross domestic product (GDP) slowed by 6% in the second quarter. – Rappler.com