Job-creating foreign investments halved in first quarter

MANILA – Money plunked by foreigners to put up businesses in the Philippines or expand existing ones was halved in the first three months of the year.

In a report, the Bangko Sentral ng Pilipinas (BSP) said foreign direct investments (FDI) fell by 50.4 percent to $851 million in the first quarter from $1.715 billion in the same three months of last year. In March alone, net inflows likewise dropped by 54.6 percent to $229 million this year from $506 million in 2014.

Lower inflows were registered across FDI categories, with net equity placements declining by 45.7 percent to $439 million this year from $809 million in 2014. In March alone, equity inflows fell by 70.2 percent to $106 million from $356 million over the same period.

Of the two types of equity capital, net inflows of fresh equity declined by 54 percent to $254 million this year from $553 million in 2014. Reinvested earnings also dropped by 28 percent to $185 million from last year’s $256 million.

Foreign lending to their Philippine affiliates also fell by 55 percent to $412 million this year from $907 million in 2014. –InterAksyon.com