Foreign Investments in Brazil Down US$16.7B: Daily
By Patricia Maresch, Senior Contributing Reporter
RIO DE JANEIRO, BRAZIL – The Federation of Industries in São Paulo (Fiesp) predicts a loss of R$26.8 billion (US$16.7), or 10 percent, in new foreign investments in Brazil as the global economy faces new threats from the U.S. and European debt crises. Local factories are struggling with an overvalued Brazilian currency, imports from China and economic difficulties abroad.
The lower expectations reflect the reduction in exports and decline in domestic sales, says a Fiesp-spokesperson. Sectors that are most affected are the food industry, chemical industry and manufacturers of leather and footwear.
Earlier this month Finance Minister Guida Mantega said manufacturers are also struggling to compete internationally because larger economies, including the U.S., are “artificially” weakening their currencies in order to make their own exports cheaper.
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