Investment in Brazil is recovering, but the country is the ninth largest destination in the world – 10/19/2021

The flow of direct investment in the world and in Brazil is recovering again in the first half of 2021, after an unprecedented collapse in 2020 due to the Covid-19 epidemic.

Data released Tuesday by the United Nations Conference on Trade and Development (Unctad) revealed a total of $825 billion in the first six months of the year, an increase of 78% over last year’s rates.

In the case of Brazil, the data shows that the country has seen a resumption of investments. In 2019, the national economy received investments of about 69 billion dollars. By 2020, the rate has fallen to just $25 billion. But, according to the United Nations, this volume rose again to $45 billion in the first six months of 2021, which is a recovery of about 80%.

Much of the influx comes from multinational companies already installed in Brazil that reinvest the money. There are practically no new acquisitions, only $1.1 billion. But announcements of new investments in the future came in at about 24 billion dollars.

Looking at the numbers, Brazil appears as the ninth largest investment destination, alongside Germany. The lead comes from the United States, followed by the European Union and China. The list also includes Singapore, Hong Kong, the United Kingdom, Canada and India, with inflows higher than the volume received by Brazil.

In previous years, the country ranked fifth and fourth among investment destinations.

This year, the biggest beneficiaries were the rich countries that, through their broad rescue packages, allowed an influx of US$424 billion and an increase of more than 117%. In Europe, the rate was only 5% below the level that existed before the health crisis, while in the United States the rate was 90%.

In middle income markets, the increase was much smaller, at just 30%, versus a decrease of 9% in the poorest countries.

The growth rate in Latin America was 78%, with a total investment of $76 billion.

International financing projects increased 32% in numbers and 74% in values, with significant increases in Asia and South America.