Brazil Betting Foreigners Will Invest US$ 33 Billion This Year

Foreign investment in Brazil Brazilian market analysts' projection for the ratio between net public debt and Gross Domestic Product (GDP), which is the sum of all goods and services produced in the country, was revised up to 41.30% from 41.20%, according to the Focus bulletin, published every Monday by the Brazilian Central Bank, based on a survey of the leading economic indicators conducted among market analysts.

The lower the debt-to-GDP ratio, the greater the confidence of investors that the country is going to meet its financial commitments. Another figure revised was that of foreign direct investment, which went up from US$ 31.30 billion to US$ 33 billion.

Last week, foreign investors received yet another incentive to investing in Brazil. Credit rating agency Fitch Ratings changed the country's grade from negative to positive.

According to the Focus bulletin, market analysts also raised the projection for the 2009 current account deficit (i.e. all operations between Brazil and foreign countries) from US$ 20 billion to US$ 22 billion.

The trade surplus (exports minus imports) was reduced from US$ 24.90 billion to US$ 24 billion. The estimated exchange rate for the end of 2008 remains at 1.70 Brazilian real (US$ 1.04 at current rates).

Balance of Trade

The Brazilian balance of trade (exports minus imports) posted a surplus of US$ 4.077 billion in the month of May, after 20 business days. Exports totaled US$ 19.306 billion and imports, US$ 15.229 billion. The figures were supplied by the Brazilian Ministry of Development, Industry and Foreign Trade

In the last week of May, exports were equivalent to US$ 4.456 billion and imports, to US$ 3.339 billion, resulting in a trade surplus of US$ 1.117 billion.

In the accumulated result for the year so far, the trade surplus stands at US$ 8.655 billion, with foreign sales of US$ 72.054 billion and imports of US$ 63.399 billion. A trade surplus of US$ 16.758 billion was recorded during the same period last year.



  • Show Comments (5)

  • ch.c.

    “Last week, foreign investors received yet another incentive to investing in Brazil. ……
    With same incentive to invest in :

    Russian Federation
    South Africa

    With similar, or one notch better rating, than the World Greatest…….Brazil !!!!!

    Is you navel not infected yet ?????

    China ? Several notches….HIGHER….than the World Greatest…….Brazil !!!!!!
    Unfair ? Send your complaints to Fitch….not me !

    πŸ˜€ πŸ˜‰ πŸ˜€ πŸ˜‰ πŸ˜€ πŸ˜‰ πŸ˜€ πŸ˜‰ πŸ˜€ πŸ˜‰ πŸ˜€ πŸ˜‰ πŸ˜€ πŸ˜‰ πŸ˜€ πŸ˜‰

  • ch.c.

    “Last week, foreign investors received yet another incentive to investing in Brazil.”

    I know, The Incentive preceding the one of last week? Simple :

    Paying a 1,5 % tax on the purchase of Brazilian bonds offered to International investors ????
    These bonds were without tax when they started to be offered just 2 years ago.

    International bonds, as they are called, are not subject to any tax , regardless of who make the borrowing and in whatever currency. Be it General Electric, Wal Mart, World Bank, ADB, EIB, IADB, Republic of Congo, Argentina or just name it. Over 2 trillion US$ or currency equivalent are borrowed annually.

    But you are soooooo special, you deserve to be the exception ! Right ?????

    In my view, changing the world standard market practices as it pleases you, better yet just two years after entering it…… will reduce and not increase the trust. Because then….investors may say :
    what could be next ? Totally taxable….despite your signature on the borrowing documents…saying the opposite ?
    At the end you are the ones who are sending goals to…YOURSELVES !!!
    Because lack of trust…as you should know…always ends up in…..higher borrowing rates and lower liquidity !
    I know you will disagree because you have not a clue of how International bonds are traded. By ignorance rather than being idiot.
    It just happens that as an ex institutional broker for American firms, I traded International bonds for “only” 3 decades.
    Dont mix up with Swiss banks, laws or whatever. I am talking by the standard practices applied the world over….by every institution….but now except the Brazilian Government.

    Another simple proof that never ever trust a brazilian is more than appropriate. He is going to change the name of the game unilaterally as it pleases him….when he realized HE goofed first !

    That is what South Americans nations losers and cheaters have done time and again if you review their historical financial performance. And telling us this time is different, you just proved that Nooooooo…you have not changed.

  • João da Silva

    [quote]What was JohanΓ€β€šΒ΄s incentive?[/quote]

    A very valid question. Under another article, Ch.c and you exchanged comments regarding the Business lunch he had with an Indian Banker in Geneva. Your reply to him was very honest and thought provoking. It is not the case of just Johan or the Indians, but applies to all the foreigners who want to invest in Brazil to build the [i]infrastructure[/i]. It has come to a point where one can not do business (be Brazilians or foreigners) without “padrinhos politicos”. Just read about the latest scandal regarding the sale of Varig Log and it wont take long to realize that the next “witch” is going to be Mattlin Patterson Inc.

    Why do you think that the Canucks pulled out of the area Oi/Telemar is operating?

  • Gringo

    [quote]Last week, foreign investors received yet another incentive to investing in Brazil.[/quote]

    What was JohanΓ€β€šΒ΄s incentive?

  • ch.c.

    ” market analysts also raised the projection for the 2009 current account deficit ”
    $ 22 billion current account deficit estimates for 2009 looks bleak, especially after a $ 10 billion or so surplus for 2007.

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