Philippine posts drop in FDI for Jan-Nov period last year

Special Report:Global Financial Crisis

MANILA, Feb. 10 (Chinese media) -- Foreign direct investment (FDI) inflows to the Philippines in the first 11 months of last year reached 1.7 billion U.S. dollars, down 40.9 percent from last year, as the global recession weaken investors' confidence, the Bangko Sentral ng Pilipinas, the country's central bank reported Tuesday.

Net inflow of equity capital, accounting for the majority of FDI to the Philippines, totaled 1 billion U.S. dollars from January to November 2008, down 50 percent from the same period in 2007.

Most of the equity inflows, mainly sourced from the U.S., Japan, Singapore, South Korea, Germany and Malaysia, went to the manufacturing, services, mining, construction and financial sectors.

Inter-company borrowing and lending between foreign direct investors and their subsidiaries and affiliates in the Philippines posted net inflows of 238 million U.S. dollars during the eleven-month period, or down 38.2 percent year on year.

The global economic slowdown has resulted in less borrowing by Philippine subsidiaries from their mother companies. Likewise, reinvested earnings for the first 11 months of 2008 dipped 13.2 percent to 394 million U.S. dollars.