Foreign investments in PH hit by global fears

[Ronzkie23]

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By Kim Arveen Patria | Yahoo! Southeast Asia Newsroom – 23 hours ago



A dim outlook for the global economy seemed to have slowed foreign investors in pouring money into the Philippines, the central bank said Monday.

Foreign direct investments (FDI) dropped by 82.89 percent to $13 million in August from $76 million a year ago, latest Bangko Sentral ng Pilipinas (BSP) data showed.

"This reflected investors' relatively cautious stance due to weak global economic prospects and financial strains in the advanced economies," BSP said in its website.

The statement comes amid fears of a looming "fiscal cliff" in the United States, even as woes in Europe are seen to be worsening.

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The U.S., however, remained the main source of gross placements of equity capital in August, along with Macau and Japan. These were invested in real estate, transportation and storage and manufacturing sectors.

"Net inflows in August month consisted mainly of equity capital, which reached US$42 million, up by 35.5 percent from the level posted in August 2011," the central bank said.

Contributing to the drop in FDI was capital outflow of $45 million as branches of foreign banks remitted profits to their head offices, offsetting net inflows of $16 million in reinvested earnings.

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Year-to-date figures, however, show a 61.2-percent hike in FDI from January to August, to $1 billion from $644 million in the same period last year.

"The surge in FDI emanated largely from net infusion of equity capital amounting to $1.1 billion," the central bank said.

Gross equity capital placements during the first eight months reached $1.3 billion, up from $400 million a year ago.

"Inflows were channeled mainly to the manufacturing, real estate, wholesale and retail, financial and insurance, and mining and quarrying sectors," BSP said.

U.S. is also the top investor based on year-to-date date, followed by Australia, the Netherlands, United Kingdom, Japan and Bermuda.

Source: Foreign investments in PH hit by global fears - Yahoo! News Philippines

[æRLO]

"global fears" or the government posturing of stricter "nationalistic" economic stances? lol ang kalibutan pay pasanginlan, bisan ug 2008-2010 ang lowest point of the global recession.

[Dorothea]

fears na sa atong mga mentally unstable local politicians