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Brazil: Foreign Direct Investment Breaks Historic Record


Foreign direct investment (FDI) in the Brazilian productive sector
totaled US$ 2.483 billion in May, the highest result ever recorded by
the Central Bank of Brazil (BC) in the month of May since 1947.

In June this year, however, the BC is expecting a lower inflow of this type of investment. The projection is of US$ 1.5 billion. So far this month (24th), foreign direct investment inflow totals US$ 1.2 billion.

"The figure is somewhat lower than those of previous months, but is not that bad either," said the head of the Economic Department of the BC, Altamir Lopes. He said once again that FDI is spread across various sectors of the Brazilian economy. Lopes added that it is normal for FDI inflows to oscillate.

In the accumulated result from January to May this year, foreign investment in the production sector totaled US$ 11.234 billion. The forecast of the BC for this year is US$ 25 billion.

Exchange Surplus

The sum of dollar inflow and outflow in Brazil was positive by US$ 380 million from the 1st to the 19th of June. Commercial transactions (exports, imports and financing for foreign trade) ran a surplus of US$ 1.007 billion.

The flow of finance (investment in bonds, remittances of profits and dividends to foreign countries and foreign direct investment, among other operations) posted a deficit of US$ 627 million.

The BC also informed that purchases of United States currency totaling US$ 1.597 billion were settled.

The figure resulted from US$ 3.4 billion in exports and US$ 2.3 billion in imports, according to the Ministry of Foreign Trade. So far this year, the surplus is US$ 12.4 billion.

The Brazilian trade surplus during the third week of June totaled US$ 1.131 billion, as a result of US$ 3.435 billion in exports and US$ 2.304 billion in imports, according to the Brazilian Ministry of Development, Industry and Foreign Trade.

In the three weeks of June, the trade surplus totals US$ 3.076 billion. During the period, exports totaled US$ 9.477 billion and imports, US$ 6.401 billion.

From January until the third week of June this year, exports totaled US$ 64.961 billion, and imports, US$ 52.513 billion. The resulting trade surplus is US$ 12.448 billion, a figure 23.6% higher than in the same period of last year (US$ 10.074 billion).

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