Byline: LEE C. CHIPONGIAN
Foreign direct investments are expected to improve in 2005 since investors would again find that the Philippines is still a good destination for their businesses.
"Hopefully FDIs approved this year will manifest their good numbers next year (because) most of the big-ticket investments such as in the energy sector were registered in 2004," Bangko Sentral ng Pilipinas Director for Investor Relations Cora Guidote said yesterday.
FDIs are major sources of cash flows to boost the countrys gross international reserves. Besides foreign investments, exports and overseas Filipino workers remittances complete the GIR components.
BSP data showed however that in the first half of the year, FDIs dramatically declined from $139 million the same period in 2003 to just $6 million as of June. This is a huge decrease of 95.7 percent.
Guidote explains that the decline was because of the balance of payments requirements. The countrys BOP as of October stood at a deficit of $184 million.
The BOP shortfall is expected to narrow more as the year draws to a close because of higher OFW remittances. As of September OFW remittances totaled $6.2 billion, up 9.2 percent from 2003s $5.7 billion. …