Foreign direct investment in Brazil reaches over US$700 million in August

18 August 2006

Brasilia, Brazil, 18 Aug – Foreign direct investment (FDI) in Brazil in August has already reached a figure of over US$700 million, the head of the economics Department of the Brazilian central bank, Altamir Lopes has said.

The economist, who forecast that FDI in Brazil will reach US$1.5 billion by the end of August, told the online edition of financial magazine Valor that investments, “have been more spread out” both in terms of their application to new economic segments as well as their amounts.

“There are new segments receiving investment and there are more low-value operations [less than US$10 million],” he explained.

The Brazilian central bank highlighted the performance of the real estate sector, which received around US$1 billion between January and July, which was a ten-fold increase on the same period of 2005.

Lopes added that government forecasts for FDI in 2006 continued to be of US$18 billion.

Te greatest percentage of investments continued to be from the United States and tax havens, such as the Cayman Islands, the central bank said. (macauhub)