Foreign direct investment in Brazil in November 68% higher than in October -Central Bank
RIO DE JANEIRO, BRAZIL – Foreign investment (FDI) in Brazil totaled US$4.6 billion in November, up 68% from the previous month. The Central Bank released these figures on Wednesday (22nd).
This volume was higher than the Central Bank’s forecast for the month, which was US$3.9 billion.
In October, there was a net inflow of US$2.5 billion, or R$26.389 billion. In November, the volume was US$2.3 billion.
In 12 months, direct investment inflows amounted to US$51.5 billion, equivalent to 3.17% of GDP (gross domestic product).
Direct investments are made by companies that prefer to establish a medium- and long-term relationship with the country and are therefore less volatile than financial investments, such as purchasing shares or government bonds.
In November, about US$4.8 billion was invested in Brazil through equity stakes in companies, when the foreign parent contributes funds in exchange for a share in the local business.
In this model, the remuneration for the investing company is based on the distribution of profits.
Intragroup loans, i.e., the granting of loans by the parent company to its Brazilian subsidiary, resulted in a net outflow of US$172 million. In this case, the foreign company returns the loan by paying fixed installments within a specified period with interest.
The pandemic impacted filings in the country, which fell sharply through 2020. Compared to the previous year, 2019, the volume of applications dropped by half. A total of US$37.8 billion was invested in the country during this period, down from US$69.1 billion in 2019.
This was the lowest level since 2009, when US$31.4 billion was invested.
The tendency is that there will be a recovery this year, but the modality should remain below the level observed before the health crisis.
The flow of foreign investments in the Brazilian stock market, mutual funds, and public securities were positive in November, with net inflows of US$989 million.
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+0.30%
175,664.62
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65,484.32
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11,445.90
-0.22%
2,979,472
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2,457.87
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| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| IBOV | 175,664.62 | +0.30% | +21.85% | 175,135.41 | 168,310 | 167,142 | — |
| USD/BRL | 5.16 | +0.01% | -5.13% | 5.16 | 5.18 | 5.14 | — |
| SELIC | 14.00% | — | — | — | — | — | |
| PETR4 | 41.64 | -0.05% | +35.19% | 41.66 | 41.97 | 41.15 | 41,499,400 |
| VALE3 | 72.97 | +0.83% | +30.75% | 72.37 | 73.54 | 72.66 | 17,658,000 |
| ITUB4 | 38.60 | -1.03% | +4.57% | 39.00 | 39.34 | 38.39 | 29,487,800 |
| BBDC4 | 16.85 | +0.36% | +3.50% | 16.79 | 16.90 | 16.67 | 19,416,900 |
| BBAS3 | 19.37 | +0.47% | +0.73% | 19.28 | 19.44 | 19.16 | 11,069,200 |
| B3SA3 | 14.26 | -0.21% | +12.73% | 14.29 | 14.47 | 14.11 | 33,037,800 |
| ABEV3 | 14.89 | -0.80% | +21.91% | 15.01 | 15.07 | 14.81 | 16,453,100 |
| WEGE3 | 47.59 | +0.49% | +29.99% | 47.36 | 48.08 | 47.36 | 3,364,600 |
| PRIO3 | 59.14 | -0.19% | +50.67% | 59.25 | 59.81 | 58.74 | 3,325,600 |
| SUZB3 | 41.33 | +2.35% | -23.55% | 40.38 | 41.48 | 40.35 | 3,914,900 |
| RENT3 | 34.68 | -0.09% | +0.84% | 34.71 | 34.96 | 34.35 | 7,979,100 |
| AZZA3 | 15.89 | -2.63% | -53.76% | 16.32 | 16.42 | 15.82 | 1,330,300 |
| CSNA3 | 4.30 | +0.47% | -42.65% | 4.28 | 4.41 | 4.26 | 10,076,100 |
| GGBR4 | 24.69 | +2.19% | +51.38% | 24.16 | 24.85 | 24.18 | 7,047,600 |
| ENEV3 | 24.21 | -1.38% | +70.49% | 24.55 | 24.64 | 23.99 | 9,297,000 |
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