FDI down by 8.5% in Q1 2013
MANILA, Philippines - Foreign direct investments (FDI) went down by 8.5% in the first quarter of 2013, according to data released by the Bangko Sentral ng Pilipinas (BSP) on Monday, June 10.
The country received $1.3 billion in net investments in January to March of 2013, slightly lower than the $1.4 billion in the same period last year.
"The decline in cumulative FDI was due mainly to lower net equity capital investments in the first quarter of the year," the BSP said in its statement.
Despite the decline, gross equity capital placements amounted to $1.5 billion, higher by 49.4% from $1 billion in the same period in 2012.
These capital investments, according to BSP, were mostly from Mexico, Japan, Malaysia and the US and were poured in these sectors:
- Water supply, sewerage and waste management and remediation activities
- Financial and insurance activities
- Arts, entertainment and recreation
- Real estate
Withdrawals amounting to about $799 million offset the $1.5 billion placements and infused equity capital of about $729 million in the first quarter of 2013.
Other investment figures for the first quarter of 2013, include:
- Reinvestment of earnings - $196 million, lower by 26.3% from $266 million in Q1 2012
- Non-residents' net placements in debt instruments issued by local affiliates - $378 million, higher by 71% from $221 million in Q1 2012
Both figures reflect the escalating business confidence due to the favorable macroeconomic conditions of the country. - Rappler.com