Foreign investment in Brazil hits record-high in January

Direct investment in the country—i.e., funds that enter the country and go straight to the productive sector in the economy—totaled $11.528 billion in January this year, the Central Bank announced today (Feb. 17). This was the highest amount for this time series, initiated in 1995. In January 2016, the total reached $5.455 billion.

According to Tulio Maciel, head of the Central Bank's economic department, such a bulky amount of funds is not ordinary this time of year. He explained that the result was driven by operations in electricity. “We've had a concentration of purchases [of companies in Brazil] in the electric sector this month.”

Maciel added that foreign investment is the best way to address the deficit in the country's external accounts, as the funds “are incorporated into the productive activity, generating income, employment, taxes, and, of course, profit, with part of it reinvested in the country.”

In January this year, external accounts stood at a negative $5.085 billion, compared to $4.817 billion in January 1016. The external accounts comprise goods and services bought and sold, as well as income transfer between the country and the world.

Translated by Fabrício Ferreira