Foreign direct investments in February 2009 recorded net inflows amounting to US$16 million, as equity capital and reinvested earnings posted positive balances. The country continued to show resilience in the face of challenging global economic conditions, with cumulative FDI net inflows in the two months to February reaching US$29 million. This level was, however, considerably lower by 75.2 percent compared to the net inflows registered a year ago amounting to US$117 million.
Net equity capital inflows in January-February 2009 amounted to US$64 million, about half the level posted a year ago. These flows were directed largely into the real estate, financial intermediation and trade/commerce sectors. However, higher reinvested earnings totaling US$28 million were recorded during the period, a reversal of the net outflow realized in the same period in 2008.
By contrast, the other capital account—consisting largely of intercompany borrowing/lending between foreign direct investors and their subsidiaries/affiliates in the Philippines—reversed to a net outflow of US$63 million, due mainly to intercompany loan payments by local subsidiaries/affiliates to their parent companies abroad and transfer of profits by local branches of foreign banks to their head offices abroad.