Sluggish

 

Job-generating foreign direct investments (FDI) managed to rise in July but the seven-month tally remained down by 35 percent from a year ago due to uncertainties brought about by the impending interest rate hike by the US Federal Reserve and the global economic slowdown led by China.

In a report, the Bangko Sentral ng Pilipinas (BSP) said  foreign direct investments registered a net inflow of  $458 million in July, 1.55 percent higher from last year’s  $451 million.   

Despite the increase in July, the seven-month tally was still 35 percent lower at  $2.48 billion compared with last year’s  $3.82 billion.

For July alone, equity placements rose 43 percent to $173 million from $121 million in July last year, while withdrawals plunged 31.25 percent to $21 million from $16 million.

The BSP said equity capital placements came mainly from the Singapore, Hong Kong, US, Japan, and the United Kingdom.

According to the central bank, these funds  were channeled primarily to financial and insurance; mining and quarrying; real estate; manufacturing; as well as wholesale and retail trade activities.

 “Financial and insurance activities captured almost half of the increase in total equity capital placements during the period reflecting investors’ confidence in the country’s sound financial system,” the BSP said.

On the other hand, earnings of foreign companies operating in the Philippines and plowed right back into the country jumped 31.7 percent to $79 million in July from $60 million in the same month last year.

Likewise, non-residents’ net investments in debt instruments including net intercompany borrowings fell 20.7 percent to $227 million from $286 million.