Foreign Investments: FDI and Portfolio
 
Foreign Direct Investments in July 2008 stood at $ 147 Million, marking a 69.2% drop from $ 478 Million in July 2007. Net inflows from January to July 2008 also registered a 60.2% decline, with FDI for the 7-month period falling from $ 2.4 Billion in 2007 to $ 960 Million in 2008. This is a sharp contrast to figures in 2007, which showed a 138.9 % growth in FDI compared to the $ 1 Billion investment posted in 2006 for the same period (January-July).

Equity capital investment also fell by 59.1% (January-July 2008), from $1.7 Billion in 2007 to $ 716 Million in 2008. Gross equity placements, amounting to $ 904 Million from January to July 2008, were invested in manufacturing (shipbuilding and repair, auto electronic parts and components, paper products), services, mining, construction, and real estate, according to the Philippine Central Bank (BSP). Figures in 2008 also show a significant 97.9% increase in equity capital withdrawals, amounting to $ 188 Million for the 7-month period (January-July 2008).

The US, Japan, Singapore, South Korea, Germany and Malaysia were identified as the top sources of foreign direct investment. From January-July 2008, foreign direct investment from the US amounted to $ 204.79 Million, a significant decline from $ 621.31 Million in the same period last year.

Click the image to enlarge 

Source: http://www.bsp.gov.ph/statistics/spei_new/tab22.htm

Foreign Portfolio investment trend is similarly starting to shift. From January to September 2008, foreign portfolio investments registered a net outflow of $ 521.7 Million a sharp turn from the same period last year, which posted net inflows of $ 3.4 Billion. Similarly, BSP September figures show a net outflow of $312 Million in September 2008, from net inflows of $ 187.5 Million in August and $ 20.2 Million in July. Registered foreign portfolio investments in September 2008 amounted to $ 517.3 Million, while portfolio investment withdrawals totaled $ 829.5 million. Of the $ 517.3 Million in foreign portfolio investment,  $ 348 Million went to listed shares, $ 167.8 to government securities, and $ 0.8 Million to peso bank deposits.

Source: http://www.bsp.gov.ph/statistics/spei_new/tab22.htm

Exports
 
Philippine exports in August 2008 reached $4.388 Billion, growing 6.5 % compared to $4.121 Billion value in August 2007. Cumulative export earnings from January to August has also increased by 4.41% from $32.97 Billion in 2007 to $34.423 Billion in 2008. Compared to July 2008 levels, however, August 2008 export earnings fell by 1.1%, from $4.4 Billion in July 2008. Among the Top 10 Philippine exports, electronic products remain the top commodity, comprising 57.7 % of exports in August 2008. However, electronics exports fell by 2.8% compared to August 2008 value, which stood at $ 2.6 Billion in August 2007. Articles of Apparel and Clothing Accessories stood as the second main export commodity. The two top export products are considered ‘losers’ as of August 2008 tallies.

The decline in these export sectors is attributed to the global economic climate which resulted in falling demand of key trade partners. In August 2008, the top 3 export destinations continue to be Japan (16.1%), the US (14.9%) and China (11.5%). For one, August 2008 exports to the US dropped by 14.86%, from $ 766.7 Million in August 2007 to $ 652.77 Million in August 2008. Export totals to the US for 2008 also registered a slight decline. From January to August 2008, export earnings stood at $5.5 Billion, marking a .67% decreasing from cumulative exports (Jan-Aug) of $5.56 Billion in 2007.

EXPORTS in AUGUST 2008

	August (2008)	July (2008)	August (2007)	January-August (2008)	January- August (2007)
TOTAL EXPORTS
FOB Value (In Million Dollars)	4387.61	4437.23	4121.45	34422.79	32970.1
Year-on-year Growth (Percent)	6.5	4.4	-3.6	4.41
Month-on-Month Growth (Percent)	-1.1	-1.7	-3
ELECTRONIC PRODUCTS
FOB Value (In Million Dollars)	2530.9	2559.55	2603.19
Year-on-year Growth (Percent)	-2.8	2.6	-3.6
Month-on-Month Growth (Percent	-1.1	-2.7	4.4

Census: www.census.gov.ph

TOP 10 Philippine Exports for All Countries in August 2008

GAINERS (Year-on-Year Growth in Percent)		LOSERS (Year-on-Year Growth in Percent)
TUNA	125.3	Articles of Apparel and Clothing Accessories	-21
Petroleum Products	100.5	Coconut Oil	-20.4
Cathodes and Sections of Cathodes of Refined Copper	91.1	Ignition Wiring Set and Other Wiring Sets Used in Vehicles, Aircrafts and Ships	-3.8
Metal Components	45	Electronic Products	-2.8
Woodcrafts and Furniture	31.3
Other Products Manufactured from Materials Exported on Consignment Basis	3.3

Source: www.census.gov.ph

OFW Remittances

Remittances in August 2008 amounted to $ 1.3 Billion, dropping slightly by 2.54% compared to the $1.36 Billion remittance level registered in July 2008. The monthly level has been falling slightly since July. The 8-month total is now at $ 10.9 Billion, with remittances for January-August 2008 growing by 17.2% compared its level of $ 9.33 Billion in the same period last year. According to the Philippine Overseas Employment Administration (POEA), the number of OFW deployed from January to August has increased by 26.4% compared to the same period last year: From 699,937 in 2007 to 884,907 in 2008 (January-August).

OFW Remittances (In Thousand Dollars)

	2008	2007	2008 month-on-month growth	2008 year-on-year Cumulative totals growth
January	1264036	1099354	-9.52
February	1258638	1085544	-0.43	15.46
March	1427807	1304847	13.44	13.2
April	1410210	1191540	-1.23	14.51
May	1429832	1237140	1.39	14.74
June	1450838	1115753	1.47	17.16
July	1366796	1096558	-5.79	18.17
August	1332023	1206942	-2.54	17.16
September		1139845
October		1388459
November		1186970
December		1396976
Cumulative Jan-August	10940180	9337678