East Asia may expect substantial rise in FDIs
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The Philippines and its neighbours may expect a rise in foreign direct investments over the next two years as the Asia-Pacific becomes the preferred business destination due to the positive outlook of the economies in the region, according to the Multilat
In its latest report, Miga said the Philippines would corner much more job-generating investments that could lift more people out of poverty.
The Philippines is expected to secure an investment grade from ratings agencies next year.
A unit of the World Bank Group that provides guarantees to investments in developing countries, Miga said the more encouraging growth performance of developing countries vis-a-vis advanced economies would allow the former to register double-digit growth in FDIs.
It projected that total FDIs to developing countries would reach US$697 billion next year—up by 17 per cent from the estimated $594 billion this year.
Economic growth, a growing consumer base, the availability of natural resources, and ongoing improvements in investment climates “will continue to improve the attractiveness of developing countries as investment destinations”, Miga said.
The estimated $594-billion worth of FDIs to developing countries in 2012 marks a decline of about 7 per cent from last year’s nearly $639 billion.
The drop in this year’s FDIs has been blamed on investors’ risk aversion brought on by the crisis in the euro zone and the sluggish growth of the United States. Global FDIs are estimated to have dropped by 10.5 per cent to $1.7 trillion by end-2012 from last year’s $1.9 trillion.
