Brasilia, Brazil, 26 Jan – Direct investment carried out by Brazilian companies abroad in 2006 was, for the first time, greater than foreign direct investment (FDI) in Brazil for the year, the Brazilian central bank said in Brasilia Thursday.
According to the published figures, Brazilian companies invested US$27.251 billion abroad and foreign companies invested US$18.872 billion in Brazil.
According to the head of the Economic Department of the Central Bank, Altamir Lopes, the new situation was due to the increasing internationalization of Brazilian companies.
Brazilian mining company Companhia do Vale do Rio Doce (CVRD) alone was responsible for almost US$14.6 billion, used for the acquisition of Canadian nickel mining company.
Drinks company Ambev invested US$1.2 billion in buying the stakes of minority shareholders of Argentinean beermaker Quilmes and Bardesco bank and Coteminas expanded their operations abroad and each invested US$1 billion.
Lopes said that this year he expected FDI in Brazil, projected at US$18 billion, to once again exceed Brazilian investment abroad, which is expected to total US$10 billion.
Although it fell below Brazilian investment abroad FDI in Brazil in 2006 reached its highest level since 2001. (macauhub)