Foreign investment in Brazil is the lowest since March 2022

Direct investment in the country (IDP) in the 12 months ending in October fell, according to the Central Bank (BCB), to the lowest level since March 2022. US$57.5 billion were invested by foreigners in the productive sector during this period. It is also the fifth consecutive drop in the indicator.

The proportion of foreign resources entering the productive sector in relation to GDP also reached the lowest level since January 2021: in October, the indicator reached 2.74%. It is falling for the fifth month in a row.

This month, there were net inflows of US$3.3 billion, compared to US$5.8 billion in October 2022. In October, there was an inflow of US$4.7 billion in capital participation and outflows of US$1.4 billion in intercompany operations.

Portfolio investments in the domestic market (in the financial sector) totaled net inflows of US$2.1 billion in October 2023, comprised of net inflows of US$500 million in shares and investment funds and US$1.6 billion in debt securities.

In the twelve months ending in October 2023, portfolio investments in the domestic market totaled net inflows of US$14.7 billion.