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.

Tags:

You May Also Like

Brazil Answer to Fastest Growth in 2 Decades: Raising Interest Rates

 The chief of Brazil’s central bank, Henrique Meirelles, said he’s “confident” that Brazilian inflation ...

Brazil and UK Sign Agreement to Fight Torture

Brazil and the United Kingdom have signed a Memorandum of Understanding on combating torture. ...

Brazil Auto Sales Grew 10% in the First Semester

In June, the Brazilian automobile industry sold 148,491 vehicles, 3.9% more than in May, ...

Brazil expands corn production

US Ethanol Production Leads Brazil to Double Corn Exports

Brazil should double foreign sales of corn in this crop to eight million tons. ...

Thanks to a 50% Hike in Beef Prices Brazil Exports 22% Less and Earns 18% More

From January to August, Brazil's beef exports fell 22% year-on-year to 711,716 tons swt ...

23 Years Later Impunity Goes on for Brazilian Ranchers Killers

On October 27 the Inter-American Commission on Human Rights (IACHR), an agency of the ...

Indian Teachers Urge More Indian Participation in Their Own Affairs

Eight indigenous peoples in the state of Pernambuco held the 15th Meeting of the ...

The Enraged Genius of Brazil’s Maestro Neschling

Her arms were extended outward, as if in gentle supplication to restless audience members ...

Brazilian Guarani Indians Say They Were Entrapped by Landowners

A commission of 15 representatives of organizations, social movements and unions visited last week, ...

Rio: Funking Away in City of God

The funk ball is on in Cidade de Deus tonight. "We’re not going in ...