Manila aims for more FDI
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The Philippine government is set to raise its 2013 projections for foreign direct investments (FDIs), portfolio inflows and the country's imports due to the recent upgrade of the country's credit rating.
“We expect more … portfolio and FDI flows to … the country,” Governor Amando Tetangco Jr of the Bangko Sentral ng Pilipinas (central bank) said.
Last month, the Philippines received its first investment grade from a major international credit rating agency.
Fitch Ratings raised the country’s rating by a notch, from BB+ to BBB-, which is the minimum investment score.
The Philippines already enjoyed a favourable sentiment even before it received an investment grade, Tetangco said. The upgrade will only serve to further stoke business activities in the country.
In its original forecast for this year, the BSP said net inflow of FDIs to the Philippines could reach US$2.2 billion, up from last year’s $2.03 billion.
Originally, the government expected imports for the year to grow by 10 per cent from last year’s $61.66 billion.
A change in the projections for FDIs, portfolio investments and imports would affect the overall government forecasts on the country’s balance of payments and gross international reserves.
