Increases interest of G-7 countries in investing in Brazil
DCI
According to most economists, "Brazil is the flavor of the month" both in Brazil and in other countries. Especially in this "post-crisis" period, Brazil has awakened the interest of developed countries, as it is the case of group formed by the seven largest economies in the world, the so-called G-7. In recent months, the United States, the United Kingdom, Canada, France, Germany, Italy and Japan, which together represent 35% of the global Gross Domestic Product (GDP), have demonstrated an intention of increasing the exports, stimulating partnerships with Brazilian companies and investing in Brazil. Despite the fact that foreign direct investment (FDI) have fallen in Brazil, according to the last statement disclosed by the Brazilian Central Bank (BC), there may be a change in the setting with the growing interest of the G-7 for the country.
In March, the FDI amounted to the net inflow of US$ 2.1 billion, 42.73% below the registered in the same month of last year (US$ 3.7 billion). In the accumulated this year (from January to March), the entry of FDI closed at US$ 5.8 billion, while in 2009, these investments amounted to US$ 6.7 billion. On the other hand, among the G-7 countries, the one that stood out in direct investments made in Brazil were the United States, whose registration in March was US$ 443 million, compared to the US$ 309 million registered the same month in 2009, which represents 21.7% of the total inflows of investments in Brazil in the period. In the year-to-date in 2010, the investments originating in that country closed at US$ 1.276 billion, an increase of 54.67% compared to the period from January to March of last year (US$ 825 million).
The French investments also stood out, going from US$ 8 million in March 2009 to US$ 263 million in the third month of this year (representing 6.7% of the total foreign investment made in Brazil). This way, in the year-to-date, the investments in that country went from US$ 225 million to US$ 392 million between the last and this year. As regards the United Kingdom and Italy, there were also significant increases in the inflows of FDI, but in smaller amounts. For the first, the BC report informed increases of 70% for the entries registered from January to March (from US$ 70 million to US$ 249 million). In the case of Italy, the remittances indicated growth of 37.21% (from US$ 43 million to US$ 59 million, whose participation gets to 1% in the total FDI) in the accrued of 2009 for the same period of 2010.
On the other side, the biggest fall in investments came from Germany, going from US$ 1.7 billion in March 2009, to US$ 15 million in the third month of this year, whose variation from one first quarter to another fell 97.55% (0.8% of the total FDI made in Brazil). Canada went from inflows of US$ 112 million, in March 2009, to US$ 32 million in the same month of 2010, resulting in fall of 38.98% in the comparison of the accumulated amounts (from US$ 118 million to US$ 72 million, 1.2% of the total FDI). And Japan sent 87.32% less compared to March 2009, from US$ 71 million to US$ 9 million in investments. In the accumulated until March, 45.74% less investment were sent, from the first quarter of 2009 to the same period this year (1.7% of total FDI made in the country).