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Foreign Investment in Brazil and LatAm Might Drop Almost by Half

Investment in Brazil The Economic Commission for Latin America and the Caribbean (Eclac) has informed that the volume of foreign investment into the region may drop by 35% or 45% this year as a consequence of global recession. The warning is part of a report on the matter launched by Eclac last Wednesday, at the organization's head offices in Santiago, Chile.

Last year, according to Eclac, the volume of foreign direct investment into Latin America and the Caribbean was US$ 128.3 billion, a record high figure.

Upon releasing the report, the executive secretary of Eclac, Alicia Bárcena, said that the flow of foreign direct investment into developing countries has increased.

South America recorded growth of 24% last year. In Mexico, however, due to the crisis in the neighboring United States. investment decreased by approximately 20%.

Despite the crisis, many companies on the American continent are expanding their trade by means of a process known as trans-Latin investment, as explained by the director of Eclac in Brazil, Renato Baumann, to the UN Radio, in Brazilian capital Brasí­lia.

"It is about strong investment within the region, but also outside of it. Let us not forget that Vale purchased the Canadian mining industry. The Brazilian Gerdau bought steel mills in the United States. These are the trans-Latin companies. And this, in the specific case of the Brazilian economy, has led to a strengthening of domestic groups," he stated.

According to the Eclac, the United States and Spain remain the leading investors in Latin America. Last year, Canada and Japan increased their presence in the region, mainly with natural resource projects.

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  • Show Comments (24)

  • natural colon cleanse

    Brazil is one of my fav countries and places to visit. Shame the economy has hit this beautiful exotic country the way it has and will. It’s really devasting and sad and we can only hope that Brazil lifts and grows.

  • Reverse Phone Lookup

    I believe its Very true. There is nothing more annoying than unsolicited advice. If a person isnˢ۪t asking you for help or advice, itˢ۪s none of your business to intrude.I totally agree with you.

  • Bosch Vacuum

    Don’t Understand
    I don’t really understand all the bashing of Brazil. It is a company on the rise and will soon become a serious global threat.

  • Acai Berry

    Matter of concern
    It is a matter of great concern. For a country like Brazil foreign money or investment helps in economic development.

  • Colon Cleanse

    Mr
    In a further boost to property owners in Brazil and those looking to visit on holiday, the National Civil Aviation Authority (ANAC) has recently granted permission for two new airlines to become operational by the end of this year.

  • cosmetic dentistry guide

    Its the time of recession and it has effected all markets local to me!

  • João da Silva

    asp
    [quote]you can spot a ch c observation on the first recent article on sean[/quote]

    Thanks ASP, finally we managed to flush ch.c out of his hibernation. 😀 😉 He seems to be in good health and spirits . 😉

  • ch.c.

    jOAO….THAT IS TOTALLY UNACCEPTABLE TO…… YOU
    About my Brazilian bashings :
    WHY DONT YOU READ THE TENS OF PAGES ON BRAZILIANS BASHINGS…IN THIS SITE….AT THE RIGHT PLACE ?
    http://www.brazzilbrief.com/viewforum.php?f=17
    MANY MANY ARE HARSHER THAN ME !
    Sorry for you….Da Silva family !!!!!!!!

    And to my bashing stating never ever trust a brazilian when doing business with….
    1) Why dont you ask….Forrest ?
    2) Why dont you ask….Bo ?
    Hmmmmmm !
    You may as well refer to their own older comments on that subject !
    SIMPLE…ISNT IT ?

  • ch.c.

    Laughs…laughs…laughs !
    To the junkie and idiot Canadense :
    STUPID QUESTION JUST FOR YOU….WHAT CANADIANS CAN EXPORT EXCEPT…..OIL PRODUCED FROM TAR SANDS AND POLLUTING THE WORLD……LUMBER/TIMBER….AND BASIC GRAINS ????????
    What else ? You are somewhat similar to….BRAZIL….until proven otherwise.
    A BASIC COMMODITIES EXPORTER.

    Ohhhhhhh true you are also quite good at mass killingSSSSS the baby seals with A STICK HAVING A ICE PICK…for their fur ! ARENT YOU ??????

  • João da Silva

    asp
    [quote]its just interesting that a lot of new people show up in droves on those threads , lambasting brazil, but cant contribure one iota to other threads, unless its some lambasting of brazil[/quote]

    Spot on.Constant Brasil bashing can get into your nerves. One must remember that the Brasilian readers of the articles in this site are educated and they can get pissed off with the lambasting. I enjoy reading your positive as well as critical views of Brasil. Keep up your good work. ch.c is okay, BUT…BUT… he tends to stereotype all the Brasilians as LIARS,CHEATERS,etc; That is totally unacceptable to me. 😉

  • asp

    you can spot a ch c observation on the first recent article on sean
    i guess with 5 articles on the indy 500 things thinned out a little but with the new sean news it should get heated up again around here…its just interesting that a lot of new people show up in droves on those threads , lambasting brazil, but cant contribure one iota to other threads, unless its some lambasting of brazil

  • João da Silva

    asp
    [quote]welcome back from your trip, joao de silva…[/quote]

    Thanks ASP.

    [quote]…..im afraid, ill tell you that…hope you are enjoying the cold that is destroying my beach life….[/quote]

    On the contrary, the weather was gorgeous in your native city. Wish I could have spent some more days there.BUT…BUT… the Motherland beaconed and welcomed me back with wet and cold weather.At least we have been having some sunshine for the past three days and that is a relief. 😉

    What happened to our other regular and distinguished fellow bloggers? Do you think ch.c has gone climbing Mt.Everest? 😀

  • asp

    welcome back from your trip, joao de silva….
    …..im afraid, ill tell you that…hope you are enjoying the cold that is destroying my beach life….

  • João da Silva

    asp
    [quote]be afraid, be very afraid[/quote]

    You sound so ominous. 😉

  • VinnyCarioca

    The Truth
    [quote]You want him back because you enjoy licking his ass.. Get a life ![/quote]
    Stop projecting….grow up.

  • asp

    pthorsen , i understand what you are saying and the dollar is going below 2
    i dont think the average american really get what is happening with thier currency. if they did they would be near panic…

    ive been warning americans for the last 7 years about the dollar going down and no one really takes it seriously. there have been enough warning articles in the new york times in the recent months to give everyone the truth about what can happen, but , the main media and average american just doesnt think about it

    they need to live in a country where them currancy goes way down and inflation starts raking peoples lives over the coals. if they knew what could really happen there would be panic

    “low dollar is good for exports” is the mantra of the rich ceos who are the only ones to gain money from that. most outsource the work anyway. the ceos make the money . but, when the average american realises that the low dollar is making all they earn and own worthless and prices for food and other things start rising very high, it will be too late

    be afraid, be very afraid

  • The Truth

    VinnyCarioca
    You want him back because you enjoy licking his ass.. Get a life !

  • João da Silva

    [quote]Let’s hope the Swiss Jackass is gone for good[/quote]

    May be he is in N.B, buying properties. ;-). How is it going in the Canuck country?

  • VinnyCarioca

    …have no idea why you want that idiot back on the site
    If you are unemotional about it…he does have very well informed opinions.

  • canadense

    Let’s hope the Swiss Jackass is gone for good
    …have no idea why you want that idiot back on the site

  • João da Silva

    VinnyCarioca
    [quote]On another note, I’ve noticed that the blogging on this site has seriously curtailed the last couple of months. I don’t write too often but do look forward to the erudite opinions of ch.c and Joao et al. What’s going on? COME BACK.[/quote]

    Thanks Vinny. I was away for a month visiting your country and enjoying the American hospitality. :D. I wouldn’t be surprised if ch.c is somewhere there in CA or FL. I was reading this site once in a while to keep me informed about what was going on in Brazil. Not much useful news though. 🙁

    Will come back soon to comment.

  • VinnyCarioca

    Which is it?
    Talk about a see saw. One day I’m reading that Brazil is immune to the global recession…another day to the contrary. If the U.S. goes down…believe me…everyone goes down. With all the GSEs in communist China and corruption/PERCEIVED stability in Brazil….don’t bank on the decoupling myth.

    On another note, I’ve noticed that the blogging on this site has seriously curtailed the last couple of months. I don’t write too often but do look forward to the erudite opinions of ch.c and Joao et al. What’s going on? COME BACK.

  • PThoreson

    Somebody better get this memo out to the hedge funds. They apparently do not know this and have been sending dollars into Brasil like there was no tomorrow! This has made the Real the strongest of all currencies against the dollar recently.

    It seems it is all about “compared to what” in other words, money is flowing into Brasil because compared to the alternatives it is attractive on a relative basis. Come hyper inflation, Brasil will be even more attractive due to its commodity based economy. I only wish and dream the inflows would fall 35%, I earn dollars but live in Brasil and below R2/dollar I can actually live cheaper in S.Florida than in Ipanema. And, as China and Brasil begin to dance closer to one another, China may well be sending more direct investment money here, perhaps as one way to rid itself of dollars.

  • Kent dentist

    Investment
    Its the time of recession and it has effected all over market in whole world.

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