Foreigners Invest Over US$ 10 Billion in Brazil, 67% More than Last Year

    Mauá shipyard in Rio de Janeiro, Brazil

    Mauá shipyard in Rio de Janeiro, Brazil Foreign Direct Investment (FDI) in Brazil should exceed the US$ 25 billion target established by the government for this year. According to foreign accounts figures disclosed by the Brazilian Central Bank (BC), in the 12 months between June and May, the total has already reached US$ 23 billion.

    In the accumulated result for the year, up to the end of May, foreign investment has already totaled US$ 10.550 billion. In the same period in 2006, they totaled US$ 6.325 billion, which represents growth of 66.79% this year.

    FDI is the total amount brought into the country from abroad with the objective of establishing companies, expanding them or establishing share participation in those that already exist.

    According to estimates by the joint head of the Economic Department at the BC, Túlio Maciel, the figures consolidated in June, whose report will only come out at the end of this month, should show an accumulated value of US$ 28.5 billion for 12 months.

    "This result clearly shows the growth tendency of foreign investment in the country, which undoubtedly reflects Brazil's better macroeconomical conditions," explained Maciel.

    He did not, however, want to anticipate whether the target would be changed or not. "Our forecasts are always conservative. We always hope for the best possible volume of information before making these changes."

    In June alone, up to the 22nd, the country received 3 billion Brazilian reais in investment. Maciel stated that preliminary figures showed, last week, "substantial entries" of investment, increasing the total FDI in the month to 6.5 billion reais. "This is the best result in the historic series," he explained.

    It is still not possible, according to the joint head, to know exactly from where these funds come, as the BC analysis is still being analyzed. "The tendency for the second half is that the volume should be even greater."

    Maciel has also pointed out that the FDI in the last 12 months is widespread, showing the good performance of several sectors of the economy. "This reflects the variety and diversification of opportunities that the country presents."

    The Foreign Direct Investment category is important for the country accounts as it shows that foreign investors are confident in the Brazilian economy and are prepared to take money out of their pocket to invest in long-term projects, like factories, agriculture and livestock, and tourism.

    This figure reveals the tendency of consolidation of economic growth in the country, as it attracts investor attention, which helps, internally, develop industry and generate jobs and income. "The country economy presents robust indices in all aspects, and this is favoring the entry of capitals into Brazil," evaluated Maciel.

    ABr

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