Foreign investment in Brazil falls to lowest level since December 2021

After a period of resurgence in May, the inflow of foreign investment in Brazil’s production sector experienced a decrease in June.

The balance of Foreign Direct Investment in the Country (FDI), which accounts for both incoming and outgoing investment, was recorded at US$1.9 billion.

This marks the lowest level of investment since December 2021, when the net outflow reached US$5.2 billion.

The Central Bank revealed this data in their external sector statistics report on Wednesday (26).

The report showed that the figure for June was 65% less than that of May and 64% less than the recorded figure in June 2022.

As a consequence, the total FDI for the first half of 2023 equated to US$31.6 billion. This is 27% less than the total recorded for the same period in 2022.

Net inflows over a 12-month period also showed a decline.

Until May, they had reached a total of USD83.4 billion, constituting 4.21% of Brazil’s Gross Domestic Product (GDP).

However, by June, this figure had reduced to US$80 billion, or 4.01% of GDP.

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