FDI recovery shows positive long-term prospects: DOF

[ASEAN NOW News]

 

MANILA – The Philippines’ long-term prospects remain positive, a Department of Finance (DOF) economic bulletin said after noting the recovery of foreign direct investments (FDIs) in the first half of the year.

 

 

Citing Bangko Sentral ng Pilipinas (BSP) data, the economic bulletin said the FDIs last June posted a 60.5 percent year-on-year growth to USD833 million.

 

In the first half of this year, the FDIs amounted to USD4.3 billion, up by 40.7 percent from the previous year’s level.

 

The economic bulletin said the 7.7 percent year-on-year rise of reinvested earnings and the 86.5 percent rise in net debt instruments countered the 8.9 percent drop in net equity capital investments for the six-month period.

 

“The year-on-year recovery of FDI during the first semester of the year suggests that the Philippines’ long-term prospects remain positive,” it said.

 

It explained that “a prudent and calibrated response to the risks posed by the (coronavirus disease 2019) Covid-19 pandemic and continuing the vaccination drive will be important in safely reopening the economy.”

 

“Moving forward, programs to make doing business easier and infrastructure investments will be key in attracting more investment into the country,” it said.

 

Among the factors, it identified as factors eyed to attract FDIs are the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Law and the pending legislation that include amendments to the Foreign Investment Act, the Commonwealth-era Public Service Act, and the Retail Trade Liberalization Act. (PNA)