Under Temer, Brazil has seen the lowest level of foreign investment since 2010.
The Central Bank's projections for Foreign Direct Investment (FDI) are falling and threatening the projections of the financial market and the institution itself, which predicted an inflow of US$ 80 billion by the end of the year; in the 12 months ending in April, FDI reached US$ 61,7 billion, corresponding to 3,03% of GDP, which in nominal terms indicates a reduction since October of last year, when it was around US$ 80 billion, and is the lowest since 2010; the coup, which promised the resumption of investments and the recovery of the economy, continues to show signs that it has plunged the country into the abyss.
247 - The Central Bank's projections for Foreign Direct Investment (FDI) are falling and threatening the projections of the financial market and the institution itself, which predicted an inflow of US$ 80 billion by the end of the year. In the 12 months ending in April, FDI reached US$ 61,7 billion, corresponding to 3,03% of GDP, which in nominal terms indicates a reduction since October of last year, when it was around US$ 80 billion, and is the lowest since 2010.
Throughout April, foreign investments totaled US$2,61 billion, compared to US$5,56 billion in the same period of the previous year. According to data from the Central Bank, when compared to last year, when monthly FDI ranged between US$6 billion and US$7 billion, current statistics indicate a contraction and even a lack of investments above US$1 billion.
According to Welber Barral, partner at Barral M Jorge Consultoria and former Secretary of Foreign Trade, the slowdown in privatizations and concessions, due to environmental problems or pending issues with the Federal Court of Accounts (TCU), is related to a reduction in the IDP (Foreign Direct Investment).
The current political situation is also cited by him as another factor of caution considered by investors. Furthermore, "the economy is not reacting at the pace that was expected. If there is a cooling or reduction in expectations, the investor also slows down," Barral told the newspaper Valor Econômico.