The Bangko Sentral ng Pilipinas (BSP) recently announced that net foreign direct investments (FDI) to the Philippines climbed 141.4% in September 2013 to $319 million. The country posted $132 million for the same period last year.
The central bank attributed the growth in FDI to the favorable outlook on the Philippine economy. Net inflows on foreign direct investments were seen on equity capital, reinvestment of earnings, and placements in debt instruments. Investment made by non-residents on debt instruments issued by local affiliates saw a significant increase from $10 million a year ago to $267 million in September.
Net foreign direct investment inflow for the Philippines grew 33.3% to $2.3 billion for the first nine months of the year. Non-residents’ net placements in debt instruments of local affiliates for the first nine months of the year saw a six-fold increase to $2 billion compared to just $328 million last year.
Equity capital saw net inflows of $7 million for September and gross equity capital placements came mainly from the U.S., the U.K., Japan, the Netherlands, and Hong Kong. These funds mainly went to the financial and insurance sectors as well as real estate, manufacturing, mining and quarrying, and professional, scientific, and technical activities.
The National Statistics Office also reported positive numbers for the country’s exports. The NSO reported that merchandise exports for October 2013 are up 14% year on year to $5.03 billion. This takes the total export earnings from January to October to $45.09 billion, a 1.3% increase from the previous year’s figure.
The Philippines exported $2.16 billion worth of electronics for October and this accounted for $43% of the export revenues for the month. October electronic export figures were 0.4% higher than the previous month. Woodcraft and furniture accounted for $300 million of the country’s export revenues or 6% of the total exports. This is up 26.5% from the same period last year.
Machinery and transport equipment export earnings amounted to $223.97 million in October, a 90% increase from the $117.96 million posted in October last year.
Japan is the country’s top export destination as the revenue from the Philippines’ exports to Japan amounted to $1.108 billion or 22% of the total exports for the month. Exports to Japan increased 51.6% from the exports recorded for the same month a year earlier.
Exports to the U.S. represented 14.2% of the total exports and export revenues from exports for October stood at $714.55 million. Exports to China for the same period stood at $643.76 million or 12.8% of the total exports. Singapore ($427.9 million), Hong Kong ($386.7), Thailand ($234.6 million), Germany ($217.23 million), Korea $198.44 million), Taiwan ($179.1 million) and Netherlands ($141.23 million) are also top markets for Philippine exports. Total exports for the top ten markets for October was valued at $4.251 billion or close to 85% of the total exports.