FDI boost expected after PH elections
Foreign Direct Investments (FDI) to the Philippines could get a boost after the upcoming elections as the policies of the new administration become clearer, said several analysts.
HSBC Global Banking and Markets Head of Foreign Exchange Research Paul Mackel stated that the elections have been “fairly subdued in terms of interest from foreigners.”
Data from the Bangko Sentral ng Pilipinas (BSP) showed that FDI inflows rose by 98.9% year-on-year to $855 million in October as lockdowns were eased in Metro Manila.
This brought the year-to-date total to $8.1 billion, up by 48.1% from the $5.5 billion in the same period of 2020.
Former BSP Deputy Governor Diwa C. Guinigundo noted that FDIs have always been sensitive to the possible results of the upcoming elections as investors “would like to get familiar with the candidates for the presidency and their respective platforms of government.”
He added that venture capitalists are expecting “market-friendly” policies from presidential candidates.
The BSP is expecting the country’s FDI inflows to reach $8.5 billion this 2022.
