São Paulo – This Tuesday (18th), the Brazilian Central Bank released a new projection of net foreign direct investment (FDI) inflow for the country this year. According to the government news agency Agência Brasil, the bank informed that FDI should reach US$ 63 billion in 2012, i.e. 2.78% of the Gross Domestic Product (GDP). The previous forecast, released in September, was US$ 60 billion.
From January through November, net FDI inflow reached US$ 59.9 billion, slightly down from the US$ 60 billion figure recorded last year. It is worth noting that FDI in Brazil reached an all-time high in 2011, at US$ 66.7 billion.
Last month alone, Brazil saw US$ 4.6 billion worth of FDI, up from US$ 4 billion in November last year, but down from US$ 7.7 billion in October this year.
FDI inflow from January to November was more than enough to cover the country’s current account deficit, which stood at US$ 45.8 billion in the same period. In November alone, however, Brazil’s current transaction deficit reached US$ 6.3 billion, less than FDI inflow in that same month.
However, the Central Bank has lowered its 2012 current transaction deficit estimate from US$ 53 billion to US$ 52.5 billion, a figure equivalent to 2.32% of the Gross Domestic Product (GDP).
According to Agência Brasil, the director of the Central Bank’s Economic Department, Tulio Maciel, said the country is in a “very favourable” situation with regard to financing the foreign account deficit, because of the volume of FDI inflow.
In 2013, the bank forecasts a US$ 65 billion deficit and an equal FDI inflow, which should amount to 2.74% of the GDP.
*Translated by Gabriel Pomerancblum
