PH posts first net FDI outflow since Dec 2011
MANILA, Philippines - Foreign direct investments recorded net outflows of $61 million in June due largely to net equity outflows of $193 million during the month, central bank data showed.
June marked the first monthly net outflow since December 2011.
Net equity capital inflows of $638 million in the first six months of 2013 were down more than 40 percent from a year earlier.
Still, net FDI inflows in the first half of the year were up 11 percent from a year earlier to $2.2 billion, the central bank said, reflecting favourable sentiment of investors on the Philippines' strong macroeconomic fundamentals.
Investments in debt instruments rose nearly four times in the first half of the year to $1.2 billion from $295 million in the same period last year.
Bulk of the net FDI inflows in January-June came from Mexico, Japan, United States and the British Virgin Islands.
They went into manufacturing, water supply, sewerage, waste management and remediation, financial and insurance activities, real estate, recreation, arts and entertainment.
Net foreign direct investment and portfolio inflows - plus remittances from Filipinos working overseas - help keep the country's balance of payments (BOP) in surplus.
The Philippines is likely to end the year with a BOP surplus of $4.4 billion, the central bank has said, backing views the peso would retain its long-term strength.
Despite robust economic growth, the Philippines has only been able to attract paltry levels of foreign direct investment compared to its Southeast Asian peers due to poor infrastructure, high power cost, restrictions on foreign ownership in major industries and land acquisition by foreigners.