Another miss: 2018 foreign direct investments dip by $500 million
MANILA, Philippines – Long-term investments into the Philippines fell short of expectations, the latest Bangko Sentral ng Pilipinas (BSP) data showed on Monday, March 11.
Foreign direct investments (FDIs) in 2018 reached $9.8 billion, 4.4% or $500 million lower than 2017's $10.3 billion.
The government's economic team had projected $10.4 billion in FDIs for 2018, which means it missed its target by $600 million.
FDIs are investments where foreign companies buy equity or actually set up shop in the country. Unlike portfolio investments, FDIs stick around longer and create more job opportunities for Filipinos.
The BSP said the sharp decline in FDIs was due to the 57.6% drop in net investments of equity capital to $132 million from $312 million a year ago. (READ: The real score on foreign direct investments)
The bulk of equity capital placements were sourced mainly from Singapore, United States, Hong Kong, Japan, and China.
These were channeled mainly into manufacturing, financial and insurance, real estate, electricity, gas, steam and air conditioning supply, and arts and recreation.
The government expects FDIs to hit $10.2 billion in 2019.