MANILA, Philippines - Foreign direct investments (FDI) to the Philippines reached $1.410 billion for the first 11 months of 2009, a 5.5% increase from the $1.336 billion recorded in the same period in 2008.

The Bangko Sentral ng Pilipinas (BSP) said the growth was driven mainly by sustained equity capital placements and higher reinvested earnings.

Gross equity capital placements for the 11-month period reached $1.540 billion, with bulk of investments coming from the United States, Japan, Hong Kong, and the Netherlands. 

These were directed mainly to manufacturing, real estate, construction, services, financial intermediation, mining, trade/commerce, and transportation/communications sectors.

Reinvested earnings, on the other hand, reached $133 million as of end-November, a reversal of the $126-million net outflow recorded in the same period in 2008.

Meanwhile, other capital account reversed to a net outflow of $91 million as of end-November from a $249-million net inflow in the same period in 2008.

The BSP said most of the outflows were traced to higher trade credits extended by Philippine-based subsidiaries or affiliates to parent companies abroad.

For the month of November alone, FDIs yielded a net inflow of $82 million. The amount is lower compared to the $210 million recorded in the same month in 2008.

The BSP is expecting FDIs to reach $1.5 billion in 2009 and $1.8 billion this year.