FDI takes a nosedive in Brazil

FDI takes a nosedive in Brazil amid pandemic, says Central Bank

Central Bank data shows that foreign direct investment (FDI) in Brazil has taken a nosedive in May 2020, falling to just USD 2.6 billion, or 69 percent less than a year ago. In the January-May stretch, the drop has been less dramatic, but still sizable: 35 percent from 2019.

That continues a trend imposed by the pandemic, which made markets more risk-averse. In April, FDI amounted to only USD 234 million — or 95 percent less than the previous year, when investments from abroad reached USD 5.1 billion.

A quick turnaround seems rather unlikely, as Brazil has become the international reference on how not to deal with the coronavirus crisis. Despite having a population much smaller than the U.S.’s, Brazil has registered more new deaths and cases per day than any other country in the world.

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