Despite Crisis Brazil & LatAm Neighbors Get US$ 139 Bi from Overseas, a 9% Boost

Brazil's Bovespa The global crisis doesn't seem to have affected direct foreign investments in Latin America and the Caribbean. These investments are showing a significant resistance to economic meltdown and in 2008 reached a record US$ 139 billion up 9.4% from the previous year according the United Nations Conference on Trade and Development.

The increase in investments was pushed particularly by the strong influx of capital towards South America, and more precisely to Brazil, Chile and Argentina, points out UNCTAD in a paper on the current financial crisis and investment.

Those three economies which had attracted US$ 67 billion in 2007 shot up to US$ 79.8 billion last year, 53% of the total investment to the region.

The crisis however was merciless with Mexico, which given its close links with the United States saw the influx of direct investments fall dramatically to US$ 18.6 billion last year.

Central America and the Caribbean also in the US sphere of influence, experienced a retraction in investments in 2008. The situation coincides with a drop in investments leaving Latin America for overseas, which contracted 30.7% to US$ 36 billion last year.

Soy Poor Crops

Stocks of soybeans worldwide are set to decline steeply to a five year low of around 50 million tons at the end of the season (10 million tons less than a year ago), mainly because of smaller crops in the leading exporting countries of South America, according to Oil World.

This would raise world dependence on US supplies in the first half of next season. As a consequence US soybean stocks are estimated to fall to 3.6 million tons for the end of next August, 100.000 tons less than May 12, and 5.58 million tons below a year ago.

This happens in the context of poor crops from the five main South American soybean exporters, Brazil, Argentina, Paraguay, Bolivia and Uruguay, which overall harvested 96.7 million tons at the beginning of this year, which is 18.1 million tons less than a year ago.

The smaller overall crop is mainly because of the prolonged drought in Argentina.

Oil World estimates that the Argentine 2009 soy crop will drop to 33 million tons from the previous 46.7 million tons, while Brazil will also suffer a contraction, but to a lesser extent from 60.01 million to 57.62 million tons this year.

Argentine beans and oil exports between March 2009 and February 2010 will fall to 4.7 million tons compared to the 11.79 million tons of the same period a year ago.

"World demand for soy beans, oil and other derivates has turned partially towards the US given the insufficient supply from South American exports," adds the Hamburg based publication.

Mercopress

Tags:

  • Show Comments (0)

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

Brazilian Farmers to Use More Co-ops to Win the World

Establishing consortia with the objective of expanding existing markets and conquering new ones is ...

Obama’s Professor and Brazil Minister to Discuss in Moscow a Substitute for Dollar

According to Brazil's Strategic Affairs minister, Roberto Mangabeira Unger, Mercosur is currently a "body ...

Brazil Gathers 50 Countries to Discuss Sustainable Energy

Held in Brazil the Global Renewable Energy Forum after four days of debate on ...

US’s HRF Gives Brazilian Woman Human Rights Award for Fighting Death Squads

Sandra Carvalho, a lawyer, sociologist and director of the non-governmental organization Global Justice, is ...

Brazil’s Romário in ‘Six Chickens and a Raging Bull’

Fluminense’s president, David Fischel, criticized football star Romário for attacking a fan after a ...

Lula Announces Brazil Will Spend US$ 10 Bi on Social Programs in 2006

In a message directed to the Brazilian Congress on Tuesday’s (February 15) inauguration of ...

Chile Accuses Brazil of Slamming Doors on Tourism for Its Swine Flu Policy

Brazilian government advice against traveling to A/H1N1 virus flu-stricken Argentina and Chile by people ...

Brazil: Sí£o Paulo and Rio Have Become Quite Expensive to Live In

Thanks to a strong appreciation of the Brazilian Real against the US dollar, São ...

Brazil's Electronics Valley

How Education and Hard Work Built Up Brazil’s Silicon Valley

The year was 1959. The place, Santa Rita do Sapucaí, a city in southeastern ...

Lula and Minister Bet Interest Rates in Brazil Will Fall Soon

Brazil’s Minister of Development, Industry, and Foreign Trade, Luiz Fernando Furlan, stated his belief ...