With the help of the privatization program for federal companies, Brazil rose from the sixth to the fourth position among the main foreign investment destinations in the world in 2019. According to a report released today (20th) by the United Nations Conference on Trade and Development ( Unctad), Brazil received US $ 75 billion in foreign investments last year, against US $ 60 billion in 2018.
The top three in the investment destination ranking went to the United States, with $ 251 billion last year; China, with US $ 140 billion, and Singapore, with US $ 110 billion. The US $ 75 billion that arrived in Brazil is equivalent to more than half of the US $ 119 billion that South America received last year.
According to the report, part of the increase in foreign investments in Brazil occurred, in part, because of the privatization program, which focused on the sale of state-owned subsidiaries and government shareholdings in private companies.
“Brazil registered an increase of 26%, to US $ 75 billion, partially driven by the privatization program launched in July as part of the administration’s efforts to accelerate the economy. The first of these privatizations involved a gas distribution company – Transportadora Associada de Gás – bought by a consortium of investors led by the French company Engie for almost US $ 8.7 billion ”, highlighted the survey.
For this year, the report says that the country should continue to receive foreign investments because of the continuation of the privatization program. “In 2020, divestments in subsidiaries of state-owned companies are expected to gain strength; the privatization of large companies such as Eletrobras, the largest electric company in Latin America, and Telebras are likely to attract much more foreign direct investment, ”adds the document.
In addition to privatizations, the report cites projects related to the environment as factors that will help boost foreign investment in Brazil this year. “Preliminary data on investments in the green area announced in the country corroborate this perspective, with the value of the projects more than doubling, in comparison with 2018, especially in renewable energy and in the automotive industry”, points out Unctad.
President Jair Bolsonaro commented on the result of the study. On the social network Twitter, he posted that the fourth place obtained by Brazil represents the return of confidence in the country.
Source: Agência Brasil
