Brazil Gets Record US$ 8.8 Billion in Foreign Direct Investment

Sildre Brazil Foreign Direct Investment (FDI) into Brazil hit a record high in March. According to the Brazilian Central Bank, the US$ 3.083 billion result was the best ever recorded for the period since the historical series was initiated in 1947.

In the accumulated result for the year, the US$ 8.799 billion figure is also the best one ever for the first quarter.

The segments that led investment in Brazil during the period were financial services (15.4%), metallurgy (10.3%) and vehicles (7.2%). "There is a significant investment volume spread across various sectors," stated the head of the Economic Department at the Central Bank, Altamir Lopes.

According to Lopes, this shows that when the economy grows on solid macroeconomic foundations, it attracts of foreign investment. "The trend in 2008 is for the expansion process to continue."

The Central Bank's projection for the month of April is of a US$ 3.8 billion inflow. So far, however, the total is still US$ 3.6 billion.

According to the UN, Brazil ranks fifth among the most attractive countries for foreign direct investment (FDI), losing only to China, India, the United States, and Russia.

The figures were taken from a survey disclosed at the end of last year by the United Nations Conference on Trade and Development (Unctad), conducted among 192 of the largest transnational companies in the world.

Besides Brazil, only Mexico, of all Latin American nations, features in the list of the 10 most attractive destinations, in the 9th position. Other countries in the region rank much lower, such as Argentina, in the 29th position, Venezuela, in 31st, Chile, in 37th, and Peru, in 40th.

According to the survey, market size and growth, as well as access to natural resources, were the factors most cited by the companies to justify investments in Latin America.

Although the survey includes investments forecasted up to 2009, in the case of Brazil, a rise in the investment inflow is already taking place. According to preliminary data supplied by the Brazilian Central Bank, US$ 26.5 billion in FDI entered the country between January and August 2007, an amount that already surpasses total investments made last year, which stood at US$ 18.8 billion.

According to the Central Bank, during the period, the funds applied into Brazil came mostly from Holland, the United States, Luxembourg, Spain, and Germany.

The sectors that attracted the most investments were sectors like basic metallurgy and steel industry, financial intermediation, metal mining, services paid to companies, trade, the chemical industry, manufacturing of coke, petroleum, fuels and alcohol, construction, the food and beverage industry and supply of electricity, gas, and hot water.

Anba

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

Lula Took Over 40 Big Brazilian Companies with Him to Saudi Arabia

Over 40 Brazilian companies and sector organizations have accompanied Brazilian president Luiz Inácio Lula ...

Crisis Spells Success Overseas for Brazil Fashion Industry

A program for the generation of export incentives known as Texbrasil, developed by the ...

Booklet Tells How to Enjoy Brazil Without Being Stung

Starting right now, tourists who come to Rio de Janeiro will receive a booklet ...

Indian Zamin Resources Builds in Brazil a Multi-Billion Iron Ore Project

According to a Dow Jones report, Indian-owned, UK-based Zamin Resources has one major iron ...

Brazil Kitchen Teaches How to Eat Well and Avoid Waste

A study by Faculty of Agricultural Engineering of the State University of Campinas (Unicamp) ...

Industry of Fear Thrives in Brazil

The original target was to collect 80,000 weapons by the end of the year. ...

70% of Brazil’s Work Force Are Women and Blacks

Women represent 43% of the Economically Active Population (EAP), in Brazil, and blacks, 46%. ...

Iran Trade with Latin America Jumps Over 200%. Brazil Is Number 1 Partner

With Brazil as its first partner in the region Iran had a threefold increase ...