For the first six months of the year, Pinoy companies invested $1.8 billion abroad, compared with the whole year’s total direct foreign investment targets of $1.7 billion.
For the 2nd quarter alone, the total outflows amounted to $2.46 billion!
In the same quarter last year, there was net inflows of $594 million. In a sense, we lost a total of more than $3 billion in this three-month period alone, characterized as it was by the messy elections.
And yet, monetary authorities do not call this capital flight!
With the ZTE scandal, expect confidence in the country to plummet some more. Even the state insurance firm GSIS is now lining up to invest $1 billion abroad rather than in the super-regions of you-know-who.