MANILA, Philippines – Foreign direct investments in the country dropped sharply in May from the year before as investor sentiment remained “subdued” due to concerns over the debt problems in Europe, the central bank said Friday, August 10.
In a statement, the Bangko Sentral ng Pilipinas (BSP) said net inflow of foreign investments in May amounted to only $US7 million against $195 million in the same month last year.
The BSP said bad news overseas, “particularly the interlocking sovereign debt and banking crises in the euro area,” outweighed positive developments in the local front, including the country’s better-than-expected economic growth and successive credit rating upgrades.
FDIs for the first 5 months reached $844 million, a 10% year-on-year increase and a reversal of the 14.8% annual decline recorded in January to May 2011.
Most of the investments came from the US, Australia, Netherlands, Japan and United Kingdom.
FDIs are what the Philippines aims to attract because they are sustainable, they create jobs and grow the economy.
The BSP said FDIs in the first 5 months were channeled mostly to the manufacturing, real estate, wholesale and retail trade, and financial and insurance sectors. – Rappler.com
Foreign investments down sharply in May
Investor sentiment remains subdued due to the debt crisis in Europe, according to the central bank
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