The country’s economic prospects for the long-term remain on the positive side amid the steady rise in foreign direct investments or FDI, the Department of Finance (DoF) said.
“The continued year-on-year recovery of FDI during the first seven months of the year suggests that the Philippines’ long-term prospects remain positive,” the DoF explained.
“A prudent and calibrated response to the risks posed by the Covid-19 pandemic and continuing the vaccination drive will be important in safely reopening the economy,” it added.
According to the Finance department, the significant increase in net debt instruments helped in the sustained rise in FDI in the recent months.
Further, the passage of the proposed Capital Markets Developments Act will increase demand for financial securities and support the continued growth in FDI, the DoF said.
“Additionally, other reforms still in the legislature, such as amendments to the Foreign Investment Act, the Commonwealth-era Public Service Act and the Retail Trade Liberalization Act will also be instrumental in mobilizing more investment, in the form of both debt and equity, into the country,” it explained.
Latest data from the Bangko Sentral ng Pilipinas (BSP) showed FDI from January to July 2021 aggregated to $5.56 billion, 43.1 percent higher than the recorded $3.88 billion in the same period year-ago.
Still, the latest FDI print has already surpassed the registered $4.66 billion in the first seven months in 2019, prior to the pandemic.
The BSP earlier casted a lower FDI forecast for the year with $7.5 billion from the previous $7.8 billion outlook.