Brazil is 4th in the ranking of foreign direct investment in 2022. The OECD report for Q1 is the latest report on the balance of what goes in and out of countries to buy or capitalize companies, among other things.
The April document did not include Brazil’s data because of the Central Bank (BC) strike.
The number came in, but with a delay.
The criterion used in the OECD report is the directional principle, which is different from the concept used by the IMF (International Monetary Fund), which usually publishes the Central Bank. Poder360 showhome the whole picture.
In 2021, Brazil ranked 4th in the world with a balance of US$50 billion, a figure lower than US$65 billion n 2019 but higher than US$28 billion in 2020.
The pandemic led to a decrease in investment in the world. This is even more true for Brazil.
In 2020, the country ranked 7th.
The OECD ranking differs from other global comparisons.
It excludes Hong Kong, an administrative region that usually is treated as an independent economy, and Singapore.
This is because the money flowing into these countries is generally used for investments in other countries.
In 2011, Brazil reached a balance of US$97 billion, which was the highest value in nominal terms since the beginning of the historical series (2005).
This represents 5.6% of the global total. Brazil ranked third in the series. It returned to this position in 2014. Then it got worse. Only in 2019 did it return to 4th place.
Robin Brooks, chief economist of the IIF (Institute of International Finance), published on his Twitter profile on Monday (Sept. 12) that foreign investment in Brazil is returning to historic highs despite the proximity of the elections.
Brooks had already mentioned that the growth outlook for Brazil in the coming years is very positive.
We're a few weeks away from elections in Brazil, which markets have fretted about for a long time. But foreign investor positioning (blue) just bounced back to max longs. All that hand-wringing about Brazilian politics may just be talk. Foreign investors are busy buying… pic.twitter.com/UZVy0lc4yx
— Robin Brooks (@robin_j_brooks) September 12, 2022
He attributes the difficulties of 2014 to shale gas development in the United States. This led to a drop in oil prices.
He said that would no longer be the case in the coming years. Brazil, as an exporter of oil and other commodities, will benefit.
ANALYSIS
Brazil’s position in the global investment rankings is another sign of the structural recovery of the Brazilian economy.
Concerns about inflation (now easing) and fiscal problems are not excessive. But sometimes, they get in the way of looking at the big picture.
These are numbers that could help the re-election project of President Jair Bolsonaro (PL, right).
Part of the electorate might consider it essential that economic policies offer positive prospects for the country.
The campaign of Luiz Inácio Lula da Silva (PT, left) could also mean that investors are optimistic that he could win the election – or at least not afraid of it.
Which of the two is better?
The prospect of a windfall is always more favorable for those in power.
It’s a good prospect for the country, regardless of the presidential election’s outcome.