Jamaica attracted US$707 million ($81.3 billion) in foreign direct investments (FDI) over 12 months ending September 2014, according to the recently published Quarterly International Investment Position report from the Bank of Jamaica (BOJ).

The preliminary FDI inflows for the period largely reflected new equity inflows for infrastructure and tourism projects, stated the BOJ.

“Furthermore, the inflows of new equity FDI is an indication that foreign investment projects are still in the expansion phase as opposed to the saturation phase when FDI inflows would have largely reflected reinvested earnings,” added the BOJ.

The FDI of US$707 million reflects the rise in stock of direct investment liabilities to US$13,333 million from US$12,626 million a year earlier, according to tables in the report.

The annual flows, however, still trail levels prior to the 2008 Western financial crisis which averaged US$800 million per annum. The World Investment Report 2014 published last year by the United Nations Conference on Trade and Development (UNCTAD) indicated that FDI flows to Jamaica reached a five-year high of US$567 million in 2013.

The BOJ indicated that the FDI flows are one pillar in the international investment position (IIP) of the island. The BOJ explained that the IIP summarises Jamaica’s external financial assets and liabilities. At September 2014, Jamaica’s Net IIP stood at negative US$21.4 billion or negative 159.2 per cent of GDP.

“In this context, the main sources of the deterioration in the IIP for the September 2014 quarter included stronger inflows from portfolio investments, increased inward foreign direct investment as well as net incurrence of external loan obligations ,” stated the BOJ. “However, the impact of these was partly offset by greater holdings of external assets largely in the form of a higher stock of reserve assets as well as greater investments in external portfolio assets by domestic investors. Of note, the significant increase in the reserve assets broadly reflected the proceeds of the US$800 million Eurobond issued in the September 2014 quarter.”