Foreign direct investment in Brazil soars 52%, reaching highest net inflow in 11 years – Central Bank

Brazilian FDI (Foreign Direct Investment) recorded the highest net inflow of funds in 11 years. From January to May this year, it amounted to USD 39.7 billion, reaching the highest level since 2011, when it was USD 41.9 billion.

The Central Bank (BC) released the data on Friday (Aug.26) as part of the statistical report on the external trade balance. Here is the full report.

Unlike foreign funds on the B3 (São Paulo Stock Exchange), direct investments in the country are focused on long-term profits. This includes investments in business areas such as companies, opening multinational branches, and infrastructure works.

In May, the net inflow of funds amounted to US$4.5 billion. It increased by 104.5% compared to the same month last year, when it was US$2.2 billion. Direct investment in the country had increased by 52.1% compared to the same period in 2021 when it amounted to US$26.1 billion.

In the accumulated 12 months, FDI totaled US$60 billion, or 3.45% of GDP. Through April, the figure was US$57.8 billion.

INTERNATIONAL RESERVES

International reserves totaled US$346.4 billion in May 2022, an increase of US$1.3 billion compared to the previous month. The result was due mainly to changes in prices and interest which contributed to increasing the stock by US$ 463 million and US$ 501 million, respectively.

With information from Poder360

More: Brazil news in English, every day from The Rio Times.

This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error