São Paulo – Foreign direct investment (FDI) shrank by 23% last year in Brazil and by 13% globally, as per a report from the United Nations Conference on Trade and Development (UNCTAD). Latin America witnessed a 19% drop in FDI flows, to USD 135 billion, caused by recession and weak commodity prices.
“Particularly of concern is the sharp drop-off in manufacturing investment projects, which play such an important role in generating badly needed productivity improvements in developing economies,” said UNCTAD secretary-general Mukhisa Kituyi.
FDI reached USD 50 billion in Brazil and USD 1.52 trillion worldwide. Developing economies again accounted for half of the ten countries targeted by the highest FDI flows.
*Translated by Gabriel Pomerancblum