Brasília – Foreign Direct Investment (FDI) in Brazil up to last Tuesday (21), the final date considered in the latest balance sheet on the foreign sector, presented by the Central bank, totalled US$ 2.1 billion and should reach US$ 2.7 billion by the end of the month, according to the head of the Economic Department at the Central Bank of Brazil, Altamir Lopes.
In August, investment in the productive sector of the economy totalled US$ 2.43 billion, and from January to last month, the total reached US$ 17.13 billion.
The Central Bank disclosed the new forecast for investment this year, which dropped from US$ 38 billion to US$ 30 billion. In 2011, the expectation is to reach US$ 45 billion. According to Lopes, this reduction in expectations for 2010 was due to some sectors having postponed investment in the country, among them metallurgy, the automotive and oil and gas sectors.
Regarding portfolio investment (shares and fixed income), expectations have risen from US$ 35 billion to US$ 38 billion. For 2011, forecasts are US$ 36 billion.
Estimates for the medium- and long-term loan extension rate abroad rose from 125% to 175%. For 2011, the expected rate is 150%.
According to Lopes, foreign direct investment, portfolio investment and extension of debt are enough to finance the current account deficit, expected to reach US$ 49 billion this year and US$ 60 billion in 2011.
*Translated by Mark Ament
