FDI inflows up 43.5% in 1st quarter

The Department of Finance (DoF) reported that net foreign direct investors (FDI) inflows rose 43.5 percent to $2.2 billion in the first quarter of 2018 compared to the same period last year. In a statement, the DoF said this was an indication of the continued investor confidence in the Duterte administration’s economic strategy.

The Bangko Sentral ng Pilipinas (BSP) said the sharp increase in net FDI inflows signified investor’s “positive outlook on the Philippine economy on the back of sound macroeconomic fundamentals and robust growth prospects.”

“These are actual investments that flowed into our economy that helped create jobs and fueled growth. We should be more concerned with FDIs that are delivering economic benefits to the people, rather than pledges,” DoF assistant secretary Paola Alvarez said.

Alvarez cited data from the BSP showing that net FDI inflows reached $682 million in March, up 27 percent from last year’s $537 million.

Alvarez added the double-digit net inflows signified a strong investors’ confidence on the administration’s economic programs, which is anchored on the human capital development and the dynamic application of spending on infrastructure.

Net FDI inflows in 2017 posted a record-high $10 billion, which is 21.5% higher than the 2016 figure.

Finance chief Carlos Dominguez III said that the high volume of foreign inflows shows a more comprehensive and sustained increase of investments in the Philippines.

Net equity capital in the first quarter increased six times to $887 million, according to the BSP, as $996 million worth of gross placements more than compensated the $109 million withdrawals recorded in the period.