Investment pledges to the PH soared by 71% in 2021
Foreign investment pledges in the Philippines increased by 71% to P192.34 billion (US$3.7 billion) in 2021 due to the gradual reopening of the economy in the fourth quarter, according to preliminary data released by the Philippine Statistics Authority (PSA).
At the same time, foreign investments made under the October to December period grew fourfold year-on-year from P36.49 billion (US$710 million) in 2020 to P133.47 billion (US$2.6 billion) in 2021.
UnionBank of the Philippines Chief Economist Ruben Carlo Asuncion said that investors are starting to set-up in the country as the economy reopens or continue with its original plans that were stalled during the height of the pandemic.
Meanwhile, the information and communication industry contributed 95.3%of approved foreign investment pledges in Q4, amounting to P127.17 billion (US$2.5 billion).
Singapore was the top source of approved foreign investment pledges last year with P80.17 billion (US$1.56 billion), accounting for 41.7% of the pledges made in the country.
Asuncion is expecting FDIs to improve in the first quarter of 2022 as people begin to “carry out economic activities” despite the COVID-19 virus.
The PSA data compiles the investment pledges from the government’s seven investment promotion agencies – the Authority of the Freeport Area of Bataan (AFAB), Board of Investments (BoI), BoI-Bangsamoro Autonomous Region in Muslim Mindanao (BoI-BARMM), Clark Development Corp. (CDC), Cagayan Economic Zone Authority (CEZA), Philippine Economic Zone Authority (PEZA) and Subic Bay Metropolitan Authority (SBMA).
