Brazil Hangs on to FDI

In May, Brazil’s central bank forecast FDI to the country would fall to $22.9bn this year from $45.1bn in 2008 as a result of the global economic slowdown. But, judging from the $2.4bn in FDI that flowed to Brazil in May alone, the forecast may prove to be too pessimistic. “May saw the best results ever on a monthly basis,” says Alessandro Texeira, president of Apex, Brazil’s trade and investment promotion agency. He adds that although FDI to Brazil may not surpass 2007 levels of $34.6bn, it will remain the highest in LatAm. He says it accounts for 35% of all FDI to the region and will probably increase. While Unctad estimates FDI to LatAm was 10% of global FDI in 2008, Texeira says this may increase to 12%-13% this year.