January 27th local time, the Central Bank of Brazil released a report that the total amount of foreign direct investment (FDI) in Brazil in 2020 was 34.167 billion US dollars, down about 50% compared with 69.174 billion US dollars in 2019, and the figure also reached a new low since 2009.
Fernando Rocha, head of statistics at the Central Bank of Brazil, blamed the decline in foreign direct investment on the coronavirus pandemic that caused Brazil’s economic recession.
Rocha said in an interview with the media that some investments “may be postponed or cancelled due to the Brazilian pandemic”.
According to the forecast of the Central Bank of Brazil in December 2020, Brazil’s foreign direct investment is expected to reach 60 billion US dollars in 2021 as the economic outlook improves.
According to the United Nations Conference on the Trade and Development of the United Nations (UNCTAD), Brazil has dropped from sixth to eighth in the ranking of attracting foreign direct investment in major countries around the world due to the sharp decline in foreign investment attraction.
In addition, UNCTAD believes that Brazil’s significant reduction in attracting foreign direct investment is due to the “suspension” of Brazil’s privatization plan and infrastructure concessions during the pandemic, as well as other structural problems.
This is also the main reason for the recent withdrawal of multinational Ford from Brazil.
As of January 27th, Brazil local time, Brazil has a total of 9,000,485 confirmed cases of COVID-19 and 220,237 deaths, ranking third and second in the world.
