Foreign direct investments decline 46.5% in October

Posted at 01/11/13 11:55 AM

MANILA, Philippines - The country saw its foreign direct investments net inflow fall by 46.5% to $38 million in October last year from $71 million in the same month in 2011.

The Bangko Sentral ng Pilipinas (BSP) said in a statement bulk of the investments came from the US, Japan, and Switzerland and were infused into the manufacturing, real estate, and financial and insurance sectors.

In the 10 months to October, FDI net inflow surged 32.6% to $1.131 billion from $853 million in the same period in 2011.

"[This] reflected investors' positive reaction to the country's robust economic performance and the improved outlook following successive favorable credit rating actions by the Fitch Ratings, Standard & Poor's and Moody's Investors Service in June, July and October 2012, respectively," the central bank said.

Bulk of the investments during the period came from the US, Australia, the Netherlands, Japan and the British Virgin Islands and were primarily used for the manufacturing, real estate, wholesale and retail, financial and insurance, mining, and transportation and storage sectors.

The BSP has forecast FDIs to have reached a net inflow of $1.5 billion in 2012.