Portuguese direct investment in Brazil falls 20.4 pct in first four months of 2011

28 June 2011

Brasilia, Brazil, 28 June – Portuguese direct investment in Brazil fell 20.4 percent year-on-year in the first four months of 2011 according to figures from Brazil’s Central bank published Monday in Brasilia.

The decrease, seen in a context of increased foreign investment in Brazil, ha sled Portugal to drop from 11th largest foreign investor in Brazil a year ago, to 15th this year.

In the period from January to April the Netherlands was the biggest foreign investor in Brazil having invested a total of US$8.1 billion, or 35 percent of the total. Spain was the second biggest investor with US$4.7 billion and a 20 percent share and in third place was the United States with investment of US$3.13 billion and a 13.4 percent share.

Despite the drop Portugal overtook other investors that a year ago has a stringer position in Brazil, such as China (which in the first four months invested US$129 million) and Denmark, but was also overtaken by other countries, such as South Korea, Switzerland, Germany and Canada, for example.

At the end of 2010 Portuguese companies had invested US$1.19 billion in Brazil, which made Portugal the 10th biggest foreign investors for that year.

Meanwhile, Portugal was one of the few European Union countries that divested in extra-community markets in 2010, continuing with its downward trend of 2009, according to figures published Monday by Eurostat, the EU’s statistics service.

In 2010 Portuguese investment outside the EU – including the biggest emerging markets such as China and Brazil – fell by 700 million euros, which was a similar drop to that seen in 2009 the biggest in absolute terms amongst the EU’s 27 countries, which is explained by the sale of stake-holdings in Brazil.

Portugal Telecom sold 50 percent of Vivo to Spain’s Telefonica and its acquisition of a stake in Oi did not entirely make up for the divestment and motorway operator Brisa sold its stake in Companhia de Concessões Rodoviárias CCR. (macauhub)

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