Brazilians’ spending abroad increases but remains below pre-pandemic levels

Photo: Adiany Montelo/Shutterstock

Brazilians spent USD 8.98 billion abroad, during international travels, in 2022 so far. Data released by the Central Bank on Monday shows that the amount is 171 percent higher than that recorded over the same period last year (USD 3.31 billion), but below pre-pandemic 2019 levels.

Spending abroad decreased during the Covid pandemic, which hit the travel industry hard due to isolation measures adopted to prevent the virus from spreading further.

A stronger U.S. dollar is now contributing to fewer people traveling or consuming services abroad — even in the case of Brazil, where the real is among the few currencies that have strengthened against the greenback this year. With increasing interest rates for credit cards — the most used payment method for international travel — and debts eating up part of their budget, Brazilians are thinking twice before going abroad.

In September, Brazilians spent USD 907 million abroad, more than double the amount recorded in the same month last year but below the volume posted in August (USD 1.1 billion).

Meanwhile, the Central Bank also reported that foreign direct investment to Brazil totaled USD 70.66 billion from January to September this year, representing the highest level since 2011 (USD 77.78 billion).

In 2021, foreign investments in the country totaled USD 46.441 billion. The Central Bank projects that this volume will reach USD 66 billion by the end of 2022.

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Fabiane Ziolla Menezes

Former editor-in-chief of LABS (Latin America Business Stories), Fabiane has more than 15 years of experience reporting on business, finance, innovation, and cities in Brazil. The latter recently took her back to the classroom and made her a Master in Urban Management from PUCPR. At TBR, she keeps an eye on economic policy, game-changing businesses, and people driving innovation in Latin America.