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.



    • 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    Your email address will not be published.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.


    You May Also Like

    Brazil Petrobras’s New Record: 1.7 Million Barrels a Day

    Petrobras – Brazilian Petroleum S.A. – broke its old daily production record of 1.596 ...

    They Don't Speak Spanish in Brazil

    They Don’t Speak Spanish in Brazil (Excerpts)

    The ignorance level regarding Brazil is higher than you might presume. I once spoke ...

    Brazil Guarantees: Growth Will Be Over 4% in 2004

    Brazilian economic growth this year is guaranteed and will be over 4%, said minister ...

    US Sends Trade Representative Schwab to Brazil to Revive Doha Talks

    U.S. Trade Representative Susan C. Schwab will be in Brazil from July 27 to ...

    Extramusical Phenomena

    In a list of 150 countries classified by the he Gini index—an indicator used ...

    Brazilians and Arabs Are All Business

    Approximately 380 Brazilian businessmen and 27 entrepreneurs from five Arab countries – Jordan, Iraq, ...

    Porfirio Pepe Lobo

    To Brazil Honduras Seems to Be Doing Everything Right These Days

    The Brazilian vice consul at the embassy in Tegucigalpa, Honduras, Francisca Francinete de Melo, ...

    Brazilian Catel herbicide

    Need for Fertilizer Boosts Brazil’s Chemical Imports by 200%

    Imports of chemical products by Brazil from the countries in the League of Arab ...