MANILA - Net inflows of foreign direct investments tripled in October, reflecting confidence in the economy, the Bangko Sentral ng Pilipinas said Wednesday.
Net FDI inflows tripled to $2.02 billion in October 2017 from $670 million during the same period in the previous year, data showed. It was also the highest level in 16 months.
Equity or stock placements during the period rose 1,788 percent to $1.59 billion, helping the Philippine Stock Exchange climb to record highs, data showed.
Investments from the Netherlands, Singapore, Kuwait, the US, and Germany went to electricity, gas, steam and air-conditioning supply activities, manufacturing, construction, real estate and wholesale and retail trade.
For the first 10 months of last year, the BSP said net FDI inflows grew 20.5 percent to $7.86 billion from $6.52 billion in the same period in 2016.
On the other hand, withdrawals rose 170.4 percent to $66 million in October, bringing the 10-month total to $465 million.
Finance Secretary Carlos Dominguez earlier said the $1.3-billion deal between Energy Development Corp and the consortium of Macquarie Infrastructure and Real Assets and Arran Investment and the $1-billion acquisition of Bulacan-based Mighty Corp by Japan Tobacco would boost FDIs this year.
Acquisition-related foreign investments generated an additional $1.5 to $2 billion in the fourth quarter of last year, ING Bank Manila senior economist Joey Cuyegkeng said
This helped the peso recover against the US dollar starting in October. The peso plunged to a fresh 11-year low of 51.77 to $1 in Oct. 25 before finishing at the $49 level at the end of the year.
The BSP sees FDIs reaching $8.2 billion this year from the projected $8 billion in 2017.