MANILA, Philippines - The country suffered a net outflow of foreign direct investments in June, the Bangko Sentral ng Pilipinas reported yesterday.
Net FDI outflow amounted to $61 million in June, a reversal of the $53-million net inflow recorded in May and the $307-million net inflow recorded in the same period last year.
This is the first time the country experienced a monthly net outflow of FDI since December 2011, when a net outflow of $8 million was recorded.
The BSP reported that there were more withdrawals of equity capital versus placements in June, resulting in a net outflow of $193 million.
“Gross equity capital placements –sourced mostly from the United States,
South Korea, Japan, United Kingdom and Hong Kong — were channeled mainly to manufacturing; real estate; construction; wholesale and retail trade; and arts, entertainment and recreation sectors,†the BSP said.
Reinvested earnings, meanwhile, amounted to a net inflow of $59 million, while placements in debt instruments issued by local firms also yielded a net inflow of $72 million.
Despite the net outflow in June, the country still enjoyed net inflows in the first half of the year, the central bank said.
Net FDI inflows hit $2.188 billion in the first half of the year — 11 percent higher than the $1.973 billion recorded in the same period last year.
“This reflected the favorable sentiment of investors on the Philippine economy on the back of strong macroeconomic fundamentals,†the BSP said.
Net inflows of equity capital amounted to $638 million in the first semester, while net inflows of reinvested earnings reached $386 million.
The country also enjoyed net inflows from placements in debt instruments amounting to $1.165 billion.
The central bank said the bulk of equity capital placements came from Mexico, Japan, the United States, and the British Virgin Islands. These were channeled to manufacturing activities; water supply, sewerage, waste management and remediation; financial and insurance activities; arts, entertainment and recreation activities; and real estate activities.
The BSP expects net FDI inflows to reach $2.2 billion this year, slightly above the $2 billion in 2012.