Not capital flight?

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.

(6:54 a.m.)


One Response to “Not capital flight?”

  1. Schumey Says:

    This only shows how nationalistic our businessmen are. It also speaks volumes of the 7.5% GDP growth. Other countries, in their infancy undertook the policy of overseas employment not just to keep their economies afloat but to pool enough resources to inject life in their economies as well in the form of investments.

    The government should check this practice and exact a hefty tax on such ventures. Who would invest in the Philippines when our wealthy citizens invest abroad? Instead of exacting heavy taxes/charge on local investments, they should focus their attention into this treasonous practice.

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