More foreign investments have flown out than have poured inward in the first three months of the year, based on latest data from the Bangko Sentral ng Pilipinas (BSP).
Such investments, also known as portfolio money, took flight in the aggregate of $309.42 million in the first three months, nearly five times more than the year ago outflow of only $65.30 million.
During the period, gross foreign investment inflows totaled only $2.939 billion while gross foreign investment outflows totaled $3.249 billion.
The monetary authorities keep track of these numbers to help them craft policy responses to evolving macroeconomic events and as a gauge on the desirability of the Philippine economy as investment destination.
These foreign investments were registered with the BSP so that when the time comes when the gains from their labor are repatriated overseas, they may purchase the foreign currency from the banks instead of elsewhere where the risks may be unacceptable.
In March alone, the net outflow aggregated $70.26 million, significantly lower than the year-ago outflow totaling $305.08 million as gross outflow reaching $1.362 billion outpaced gross inflows of only $1.255 billion.
According to the BSP, the bulk or 64.6 percent of the investments were in securities traded at the Philippine Stock Exchange (PSE), mainly in banks, property, holding firms, food, beverage and tobacco and transportation services).
The remaining went to investments in peso government securities (35.4 percent) and in other instruments (less than one percent).
The top five investor countries for the month were the United Kingdom, United States (US), Singapore, Luxembourg and Norway with combined share to total at 86.4 percent.
