MANILA, Philippines - Net inflow of foreign direct investments (FDI) plunged in February from a year ago as unfavorable developments overseas weighed on investor sentiment.
The Bangko Sentral ng Pilipinas (BSP) said FDI net inflow amounted to $97 million in February, down over 70% from the $326 million recorded in the same month last year.
This brought net inflows for the first 2 months to $304 million, a 39% decline from $496 million last year.
"Investor sentiment was subdued on account of unrest in some parts of the Middle East and North Africa, sovereign debt concerns in some European economies, as well as expectations of monetary tightening in Asia amid inflationary concerns," BSP Governor Amando Tetangco Jr. said in a statement.
Equity capital registered a net inflow of $10 million in February, down from year-ago net inflow of $76 million. The bulk of these inflows originated from the United States, Singapore, Japan, Hong Kong, and Germany.
Net FDI, portfolio inflows, and remittances from Filipinos working and living overseas help keep the country's balance of payments (BOP) in surplus.
The central bank revised its estimate for balance of payments surplus this year to $6.7 billion from a range of $6 billion to $8 billion. The Philippines posted a record balance of payments surplus of $14.4 billion in 2010, boosted by strong portfolio inflows.