Although the Philippines is still a long way to recovery after the pandemic took root last year, things are looking up for the country this year.
According to the Bangko Sentral ng Pilipinas (BSP), foreign investment in the Philippines rose significantly at the start of 2021. Foreign direct investments (FDI) in the country soared to 41.5% in January 2021 alone – a big leap when compared to the same period last year.
In the latest figures released by BSP, FDI investments reached $961 million in January 2021 – growing by almost $300 million. On the other hand, 2020’s total net inflow for the same month only amounted to $679 million.
The government agency attributes the drastic increase in said inflows to reinvestment of earnings and foreign firms’ lendings to local counterparts. BSP also credits the ‘gradual reopening of the country’s economy’ as well as the ‘easing of lockdown measures’ in the growth of investments.
“This development reflects the investors’ optimism at the start of the year due in turn to the gradual reopening of the economy under the ‘new normal’ condition, easing of lockdown measures, and positive news about the rollout of COVID-19 vaccines,” the agency explained.
Besides growth in FDIs, the country also made gains when it comes to equity capital placements. It grew from $350 million last year to $351 million this 2021 – inching upwards by 0.5%.
The bulk of equity capital placements in the country came from Singapore, Japan, and the Netherlands. These were funneled to financial and insurance, manufacturing, and professional, scientific, and technical industries.
With how things are going, the BSP projects total FDI to climb to $7.8 billion at the end of 2021.
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Image credit: Bangko Sentral ng Pilipinas’ Official Facebook Page