Philippine '10 net FDI flows seen $1.7 bln: sources

MANILA (Reuters) - The Philippine central bank has forecast that net foreign direct investment (FDI) in the country will reach $1.7 billion next year, higher than the $1.5 billion predicted for 2009, government sources said at the weekend.

The central bank based the 2010 FDI estimate on an expected improvement in the economy, which should attract foreign inflows into the Southeast Asian country, sources at the Development Budget Coordination Committee (DBCC) said.

The DBCC is an inter-agency body in charge of setting the government's economic and fiscal targets.

Manila expects GDP growth of 2.6-3.6 percent in 2010, better than this year's target of 0.8-1.8 percent.

The Philippines' net foreign direct investments, along with remittances from Filipinos working and living overseas, help boost its balance of payments, which is expected to reach a surplus of $4-5 billion this year and $3-4 billion next year.

FDIs in the eight months to August totaled $1.28 billion, up 30.5 percent from last year.

The Philippine central bank has raised its forecast for net FDI flows this year to $1.5 billion, more than double its original estimate of $700 million.

(Reporting by Karen Lema, Editing by Ron Popeski)