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US and UK Main Beneficiaries of Brazil's US$ 152 Billion Foreign Investment PDF Print E-mail
Written by Marli Moreira   
Monday, 07 January 2008

Real, the Brazilian currency The transfer of money from Brazil abroad, turned to financial investment both by natural people and by organizations, grew 36.2%, in the accumulated result for 2006, according to a study disclosed by the Brazilian Central Bank. In the period, the total reached US$ 152.2 billion. This volume is the largest registered since 2001, when the total was US$ 68.5 billion.

In 2006, the volume of cash deposits reached US$ 17.2 billion and the United States are still the leader in total funds received, with participation of 47.8%, followed by the United Kingdom, with 22.1% and the Cayman Islands, with 8.7%.

The figures are included in a study of Brazilian Capital Abroad, promoted by the Brazilian Central Bank based on statements considering the assets of residents in Brazil. This was the sixth study promoted since 2002, and it demonstrates the movement since 2001. The study shows that in 2006 the number of declarers rose from 12.366 to 13,404.  Of this universe, 1,589 are companies and 11,815 are natural people.

From 2001 to 2006, according to the study, there was a gradual advance in turnover. Among the highlights, in 2006, is the increase of direct investment in share acquisition of over 10% of company capital (US$ 97.7 billion).

Of this total, the largest share US$ 20.3 billion went to the Cayman Islands, followed by Bermuda (US$ 15.1 billion), Denmark (US$ 10.4 billion), British Virgin Island (US$ 10.3 billion) and Bahamas (US$ 9.3 billion).

Still referring to the Brazilian direct investment in over 10% of capital, the report shows that the tendency is for this investment in the tertiary sector of the economy.

"In this sector, the main values went to services provided to companies, with US$ 50.6 billion, and to financial intermediation, including insurance and private pension, with US$ 20.5 billion. These two activity groups concentrate 72.8% of the total declared for the tertiary sector. The main volume of funds was identified in services provided to companies (US$ 50.6 billion) and financial intermediation (US$ 20.5 billion)", states the report.

According to the figures, the investment in new countries is rising. In 2006, funds went to 160 nations.

Balance of Trade

The Brazilian balance of trade surplus (exports minus imports) in the first week of 2008, which had only three business days, stood at US$ 70 million, or a daily average of US$ 23.3 million, which is the equivalent of a 87.18% decrease in comparison with the daily surplus recorded last month, and a 79.63% decrease compared with the average recorded in January 2007.

Foreign sales began the year low and totaled US$ 1.493 billion last week, at a daily average of US$ 497.7 billion – roughly the same level as the daily average recorded in January 2007, with a decrease of only 0.3%. Imports totaled US$ 1.423 billion and, on the contrary, had a daily average 23.23% greater than in the same month of last year.

The overall figures for last week's balance of trade were disclosed today (7th) by the Brazilian Ministry of Development, Industry and Foreign Trade.

ABr

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