11/25/2008 14h54
Direct foreign investment breaks record in the country
Folha de São Paulo 11/25/2008
Some days to the end of November, the flow of direct foreign investments to Brazil already exceeds the amount projected by the Brazilian Central Bank for the entire year of 2008. Until yesterday, according to preliminary data closed by the BC (Brazilian Central Bank), the inflow of foreign capital amounted US$ 37.1 billion, superior to the estimate of US$ 35 billion. The figure refers to investments made by foreigners in the acquisition of Brazilian companies or in the increase of the productive capacity of companies that are already installed in the country. It is estimated that, in total, foreign multinational companies have nearly US$ 370 billion invested in Brazil. The inflow of investments occurred until now also exceeds the US$ 34.6 billion registered in 2007, that was, so far, the higher result ever seen in the statistics series of the BC that started in 1947. The head of the Economic Department of the BC, Altamir Lopes, says that, unlike the investments of foreigners in the financial market, the direct investments have longer terms objectives, which might explain their positive results even after the worsening of the crisis. "The direct foreign investment is an asset of longer term and remains to flowing very satisfactorily. It is a reflex of the perception that the Brazilian economy still has good grounds", states Lopes. That, however, does not mean that the record inflow of foreign investments will be kept long. In September, for example, this kind of investment amounted to US$ 6.3 billion. In October, the result had already fallen to R$ 3.9 billion and this month it should be US$ 2.8 billion, according to the forecast of the BC.
