Saturday, December 11, 2010

FDI net inflow at $66-M in Sept

MANILA, Philippines - Foreign direct investments (FDI) recorded a net inflow of $66 million in September, reversing the $54 million outflow in the same month last year.

For the first 9 months of the year, the FDI net inflow amounted to $1.1 billion versus $1.6 billion in 2009.

"The moderate inflows this year reflected cautious investor sentiment on the back of renewed concerns over the exposure of European banks to sovereign debt and the health of the American economy, notwithstanding the strong fundamentals in the domestic economy," the Bangko Sentral ng Pilipinas said.

Equity capital registered a net outflow of $22 million in September, better than the year ago's net outflow of $45 million.

Net FDI, portfolio inflows, and remittances from Filipinos working overseas help keep the country's balance of payments (BOP) in surplus.

The central bank has forecast a net FDI inflow of $2 billion this year, up 5.3% from $1.9 billion in 2009.

It said it expects the BOP surplus to hit $8.2 billion, more than double an earlier estimate of $3.7 billion, on strong exports, remittances and fund inflows.

The BOP surplus in the first 9 months of the year stood at $6.54 billion.

The Philippines' BOP was in surplus of nearly $5.3 billion in 2009, the biggest in 2 years.

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