Brazil to be among top destinations of foreign investment
Brazil will be one of the main destinations of foreign investment next year, a study released Wednesday by the country’s Institute of Applied Economic Research (IPEA) said.
According to the International Perception of Brazil Monitor study, the indicator that measures the likelihood of Brazil receiving foreign investment rose from 35 points in May to 43 points in August.
Seventy percent of interviewees worldwide consider Brazil one of the top five destinations for foreign investment, up from 56 percent in May.
These figures reflect the large inflow of investment the country has received over the past two years. In 2010, Brazil ranked fifth in foreign investment, which had not happened since the privatization of several state-owned companies in the mid-1990s, IPEA expert Andre Pinelli Alves said.
The indicator which measures the international perception of Brazil’s economic situation rose six points since the last study, reflecting a better expectation regarding the inflation rate, according to IPEA.
However, Alves said the study was carried out before Brazil’s Monetary Policy Committee cut the annual basic interest rate to 12 percent, which might somewhat have changed expectations.
He said the interviewees still believed Brazil would keep fighting poverty, but their optimism was lessened by the expectation that the country’s growth rate would be lower this year.
According to a report released Tuesday by the International Monetary Fund, Brazil’s GDP will record an increase of 3.8 percent in 2011 and 3.6 percent in 2012, against a 4-percent world average in both years.
The IPEA study was carried out among embassies and consulates, commerce chambers, foreign companies and multilateral organizations.
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