Total BOP FDI in US$ and Philippine Pesos (levels and growth)

Based on the preliminary estimates of the Bangko Sentral ng Pilipinas, foreign direct investments (FDIs) in the first quarter of 2008 totaled to US$ 434.0 million or  PhP 17.7 billion. The net FDI inflows were lower than the level posted during the same period last year due to the global economic slowdown, particularly in the United States. FDI flows into the Philippines last year came from a high base due to a large-scale investment in a local firm¹.

Investments were directed to manufacturing (ship building and repair), services (recreational/cultural), mining, construction (hotel/resort development, power plant facility), real estate, and financial institutions.  Major investors came from the United States of America (USA), Japan, Malaysia, and South Korea.

Reinvested earnings were recorded at US$ 118.0 million from January to March 2008, 10.6 percent lower than the level realized during the same period in 2007.  Reinvested earnings expressed in Philippine pesos reached PhP 4.8 billion.

Figure 5 Balance of Payments FDI in million US$
First Quarter, 2007 and 2008

¹ BSP media release dated May 12, 2008, covering Jan-Feb FDI data