©Reuters. Foreign direct investment in Brazil grew by almost 23% in 2021
Brasilia, Jan 26 (.).- Foreign direct investment in Brazil grew by 22.9% in 2021, after the sharp drop it had in the 2020 financial year, and ended with a total of 46,441 million dollars, reported this Wednesday the Central Bank.
In 2020, foreign direct investment in Brazil had plummeted 50.6% compared to 2019 data as a result of the impact on the Brazilian economy of the pandemic, which persists and has already caused some 624,000 deaths in this country.
Despite this growth of 22.9% registered in 2021, the amount reached is below the latest forecast of the Central Bank, which calculated that it would close the year with a foreign direct investment of 52,000 million dollars.
For this year, the central institute is betting on a recovery and calculates that it will close 2022 with an accumulated foreign investment of some 55,000 million dollars.
Although last November foreign direct investment in Brazil totaled 4,588 million dollars, the end of the year was impacted by the decline in December, when it had a negative balance of 3,935 million dollars.
This variation reflected the operations of loans between companies and capital participations of companies, among others, with a total sum of funds that was greater than those that arrived in Brazil in the last month of the year.
An important item that influenced the annual result of foreign direct investments was that of reinvested profits, which reached about 14.2 billion dollars in 2021, compared to 5.5 billion the previous year.
In addition, the funds allocated to capital participations grew last year by 14.6% and reached 32.2 billion dollars.
The Central Bank of Brazil also reported that it closed 2021 with a deficit in its external accounts of 28,110 million dollars, with a growth of 14.8% compared to what was recorded in 2020, which was 24,492 million dollars.
This level of the deficit in the current account represents 1.75% of the gross domestic product (GDP) calculated by the Central Bank for the end of 2021. The latest forecast by the central institute predicted that the annual deficit would reach about 30,000 million.
Only last December, the deficit was 5,891 million dollars, 30.3% more than in the same month of 2020.
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