Tuesday, April 12, 2011

...the investment

BSP: FDIs grow 22% to $207M in January 2011

Foreign direct investments grew 21.8 percent in January, a reflection of buoyant prospects for the global economy this year, the Bangko Sentral ng Pilipinas said Tuesday.

Total investments, known as FDIs, reached $207 million in January or $37 million more than the $170 million in the same month last year, according to BSP data, which showed a net flow of equity capital from a negative position in the same comparable period.

"The strong economic performance in 2010, combined with a cautiously optimistic outlook in 2011, also helped FDI in flows into the country," BSP officer-in-charge Nestor Espenilla Jr. said in a statement.

The Philippines last year posted its fastest economic growth in 34 years, as its gross domestic product (GDP) expanded 7.3 percent to P8.5 trillion, according to the National Economic and Development Authority (NEDA).

Inlcuding remittances, largely from overseas Filipino works, and other foreign transactions, the gross national product totaled P9.5 trillion, NEDA director-general Cayetano Paderanga Jr. in a briefing on the Philippine Development Plan 2011-2016 late Monday.

Last year’s output also exceeded the 6-percent growth target set by the Cabinet-level Development Budget Coordination Committee, which was revised from 5 percent.

With the full impact of global depression, the Philippines managed to churn out 1.1 percent in GDP in 2009 from 3.8 percent in 2008.

Under the six-year plan, Philippine economic managers expect the GDP to accelerate between 7 percent and 8 percent a year

Equity placements surged 192.6 percent to $31 million from $17 million while withdrawals plunged 86.4 percent to $6 million from $44 million, Espenilla said, which helped reverse the position to a net inflow of $25 million from a net outflow of $27 million.

The placements were made largely in real estate, mining, manufacturing — particularly chemical products, iron and steel casting — as well as in administrative and support services (business process outsourcing, especially call centers, the deputy governor said.

The bulk of the equity flows came from the US, Japan , Singapore, and Hong Kong, he added. — VS, GMA News

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