FDI Inflows Rise 21.3% in May

Foreign direct investment (FDI) inflows to the Philippines posted a double-digit growth in May, on the back of higher debt placements from overseas investors and boosted by manufacturing projects, even as the five-month tally remained well below last year's level.

- By KEISHA TA-ASAN

Data from the Bangko Sentral ng Pilipinas (BSP) showed net FDI inflows jumped by 21.3 percent to $586 million in May from $483 million in the same month last year. It was the lowest in two months. However, the growth rate marked the fastest pace in seven months.

The May figure was largely driven by an 88.3-percent surge in nonresidents' net investments in debt instruments to $427 million from $227 million a year ago.

"The uptick in May's FDI reflects improved investor sentiment due to the country's solid macroeconomic fundamentals, relatively stable (decelerating) inflation and infrastructure momentum," John Paolo Rivera, senior research fellow at the Philippine Institute for Development Studies, said.