[ad_1]
Net inflows of foreign direct investment (FDI) grew year on year for the fourth consecutive month in August thanks to renewed investor confidence, but not enough to reinforce the amount accumulated so far this year, according to the Bangko Sentral ng Pilipinas (BSP). .
Central bank data showed Wednesday that inflows in the eighth month expanded by 46.9 percent to $ 637 million from $ 434 million in August 2019. However, the figure was less than the $ 797 million in July and the lowest since $ 481 billion in June.
In a statement, the Bangko Sentral attributed the latest amount to “renewed investor confidence as fiscal stimulus from the national government and [the] BSP’s accommodative monetary policy stance to mitigate the impact of [the] The Covid-19 (2019 coronavirus) pandemic gained strength, along with the easing of quarantine measures in the country. “
The growth followed until a 72.2 percent increase in net investments in debt instruments, which rose to $ 459 million from $ 267 million in the same month last year.
Net equity investments also accelerated by 32.9 percent to $ 107 million from $ 81 million a year ago after equity placements soared 30.1 percent to $ 118 million in between. from the 7.1 percent increase in withdrawals to $ 10 million.
The August infusions came primarily from Japan, the United States and the British Virgin Islands. These were channeled mainly towards manufacturing; real estate; financial and insurance; and professional, scientific and technical industries.
Earnings reinvestment decreased 17.9 percent to $ 71 million in August from $ 86 million a year earlier.
The August figure could not support the eight-month tally, which fell 5.6 percent to $ 4.43 billion from $ 4.69 billion in the same period in 2019.
Despite this, the central bank said that “the four consecutive months of growth since May resulted in a considerable reduction in the cumulative contraction of net FDI of 27.9 percent in April 2020.”
“The lower cumulative contraction in net FDI of 5.6 percent can generally be attributed to net inflows in equity investments (other than reinvested earnings) and debt instruments [in] May to August 2020 ”, he added.
Net equity investments grew 99.6 percent to $ 1.09 billion from $ 550 million year-over-year.
By component, equity placements increased 8.1 percent to $ 1.23 billion from $ 1.14 billion, while withdrawals fell 77.1 percent to $ 136 million from $ 591 millions.
Equity injections in the eight months ending in August came mainly from Japan, the Netherlands, the United States and Singapore. These were mainly placed in manufacturing; real estate; financial and insurance; administrative and support service; and wholesale and retail trade sectors.
Accumulated net investments in debt instruments and reinvested earnings decreased 19.3 percent to $ 2.75 billion and 20.6 percent to $ 577 million, respectively.
The BSP forecasts that these job-creating investments will reach $ 4.1 billion this year, down from its previous estimate of $ 8.2 billion.
[ad_2]
