Philippine foreign direct investments (FDI) in November recorded a net inflow of 53 million U.S. dollars, sharply lower than the previous month on weaker investor confidence, the country's central bank said Friday.
This level was 82.6 percent lower posted in October. The central bank said the Eurozone crisis dampened investor sentiment.
Net inflows of equity capital declined by 85 percent on-year to 41 million U.S. dollars. The other capital account reversed to a net outflow of 14 million U.S. dollars from a net inflow of 26 million U.S. dollars in November 2010. This is caused by intercompany loan repayments to foreign direct investors given adequate foreign exchange liquidity in the country.
Reinvested earnings increased by more than sixfold to 26 million U.S. dollars from the year-ago level of 4 million U.S. dollars as foreign investors chose to retain earnings in local enterprises.
For the months from January to November last year, FDI totaled 782 million U.S. dollars, down 38.5 percent on year.
Most of the investments came from the U.S., Japan, Republic of Korea, Singapore and China's Hong Kong.
These were channeled mainly to the following sectors: manufacturing (semiconductors, wiring harness, garments/wearing apparel, iron and steel), real estate, mining and quarrying, electricity, gas, steam and air conditioning supply, wholesale and retail trade, and financial and insurance activities./.