Brazilian Multinationals Increase Overseas Investment by 44%

Speaking at a seminar yesterday, May 29, the president of Brazil’s Central Bank, Henrique Meirelles, reported that direct foreign investments abroad by Brazilian firms rose from US$ 50 billion in 2001, to US$ 71.6 billion in September 2005, an increase of 44%.

Meirelles called the branching out of Brazilian firms abroad "natural and healthy." They remit profits and dividends back to Brazil, he pointed out.

And he went on to say that it showed the "Globalization of Brazilian business and a corporate effort to take advantage of foreign markets and obtain comparative advantages."

The growth abroad reflects the sound, solid competitive capacity of the Brazilian economy. Meirelles added that GDP growth this year should be 4%, higher that the average of 3.7% for the last three years.

Brazil is the fourth country amongst the developing nations with greatest direct investments abroad. The information is from the United Nations Conference on Trade and Development (Unctad).

ABr

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