Coronavirus

Brazil’s Central Bank: FDI cut in half during the pandemic

Brazil's Central Bank: FDI investments cut in half in 2020
Photo: Miriam Doerr Martin Frommherz/Shutterstock

With the pandemic causing turmoil in international markets, foreign direct investment (FDI) in Brazil dropped 50.6 percent in 2020. The USD 34.1 billion injected into the Brazilian economy last year was the lowest since the 2000s.

For 2021, the Central Bank estimates FDI inflows to hover around USD 60 billion as “pandemic-related uncertainty is set to lower — making for an environment that is more favorable to emerging economies — and domestic growth will improve Brazilian companies’ profitability,” says the bank.

Foreign accounts posted a USD 12.5-billion deficit in 2020, a 75-percent decrease from the previous year. A lower deficit is associated with a strong reduction in activity and a steep deterioration of the Brazilian currency against the U.S. Dollar.

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