Foreign investments rise 10.2% to $844m

Foreign direct investments rose 10.2 percent year-on-year in the first five months, despite the sharp drop recorded in May, the Bangko Sentral said Friday.

The Bangko Sentral said net inflows in the January-May period reached $844 million, up from $766 million recorded during the same period in 2011.

Data, however, showed the FDI net inflows in May plunged 96.4 percent to just $7 million from $195 million recorded during the same month last year.

“Investor sentiment remained subdued on the back of continued concerns over developments in some advanced economies, particularly the interlocking sovereign debt and banking crisis in the euro area,” the Bangko Sentral said.

“This developed notwithstanding the positive developments in the local front, including news of the country’s better-than-expected economic growth performance in the first quarter of 2012 and Moody’s positive credit rating action during the month,” it added.

The five-month FDI figure was buoyed mainly by the $778-million net inflows recorded in January.

“The rise in FDI [in the first five months] was driven mainly by equity capital, which yielded net inflows of $992 million,” the Bangko Sentral said. –Anna Leah G. Estrada, Manila Standard Today