Brazil Gets 24% More on Its Share of Foreign Direct Investment

    Milplast, in São Bernardo do Campo, São Paulo, Brazil

    Milplast, in São Bernardo do Campo, São Paulo, Brazil The volume of private funds destined to developing countries in the form of direct investment, loans, investment in stocks, and purchase of bonds reached a record-high figure last year, US$ 647 billion, an increase of 17% over 2005. Brazil was benefited with a 24% increase on Foreign Direct Investment getting almost US$ 20 billion out of the global pie.

    The data were published Tuesday, May 29, in the Global Development Finance 2007, a report by the World Bank.

    Despite the increased capital flow, the figure represents a slowdown compared with the previous year, when the flow of capital to developing countries had a 34% increase, to reach US$ 551.6 billion.

    According to the World Bank, there has been a substantial change in the profile of foreign debt in emerging countries, which during most of the post-war period was dominated by loans controlled by the governments.

    Last year, the volume of foreign funds raised by private and state-owned companies in developing countries was US$ 400 billion, three times the amount recorded three years ago. The companies kept more than half the capital obtained from bonds issued by emerging countries in the international market in 2006.

    With foreign exchange reserves at a high level and good macroeconomic conditions, companies in developing countries are benefiting from the growing availability of foreign capital in order to diversify their sources of financing, pay their debts, and increase their amount of business in the global market.

    Another record high shown by the World Bank report was foreign direct investment (FDI) to developing countries, which stood at US$ 325 billion last year, a 52% increase over the year before.

    In Latin America and the Caribbean, there was a slight decrease, from US$ 70 billion to US$ 69.4 billion. Nevertheless, the volume of investment in Brazil had a 24% increase, standing at US$ 18.8 billion.

    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    Your email address will not be published.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

    Brazilian Banks’ Profits Raise Market’s Boat

    Latin American stocks were mixed to higher, with Brazilian and Mexican shares gaining on ...

    Brazilian Kidnappers Adopt Iraqi Style and Sell Victim to Other Gangs

    Borrowing a page from Iraq under US-occupation, where kidnap victims are sold to groups ...

    Brazilian students protest in capital Brasília

    Brazilian Lessons on Absurdity and Selfishness

    As surprising as it may seem, the U.S. does not hold a monopoly on ...

    Dreaming of Venice

    But who was is talking about exterminating, Father? Who? Who talked about this? You ...

    How Brazil Breeders Are Improving Arab Cattle

    The breeders of bovines of the zebu breeds of Brazil are preparing themselves for ...

    Brazil Reaches the Pacific: From Sea to Shining Sea

    A bridge was inaugurated the past weekend linking the town of Assis Brasil, in ...

    Another Made-in-Brazil Submarine is Sea Ready

    The fourth submarine built in Brazil will be set to sea on Wednesday, March ...

    Fashion Business in Rio, Brazil

    Made in Brazil: Rio Fashion Exports Grow 13%

    The fashion industry in the southeastern Brazilian state of Rio de Janeiro consolidated its ...

    Brazilian Press: Lolita to the Rescue

    Advertisers don’t want circulation but money to ensure their survival. The middle or upper-middle ...