The inflow of foreign capital to the productive sector in Brazil decreased by 28.3% in the first four months of 2023 compared to the same period last year, accordin to “Gazeta do Povo”.
The balance of the so-called direct investment in brazil between January and April of this year, the first year of Luiz Inácio Lula da Silva administration, was $24.3 billion, against $33.9 billion in interval equivalent to 2022, the last year of Jair Bolsonaro’s term.
Considering only April, the net inflow of foreign investments amounted to $3.3 billion, compared with $11.1 billion in the same month last year, a decrease of 70.3%.
Despite the significant difference from year to year, analysts believe that the decrease in the outflow of capital from abroad has nothing to do with a change of government and, accordingly, economic policy.
“The first relevant comment is that the comparison base is very high”, economist Rodolfo Margato, at XP Investimentos said.
He recalls that the IDP balance for 2022, of US$ 90.6 billion, was the best nominal result in ten years, which surprised all the projections made by market operators..
Margato argued that “it is not a reflection of a greater fear of the government “We do not notice a change in the interest of the global players initiative in this sense, at least not of sufficient magnitude to explain this reduction in cumulative terms for the year”.
In 2020, the first year of the health crisis, the net inflow of foreign investments in Brazil stood at $37.8 billion, and In 2021 the balance of foreign investment was $46.4 billion.
In 2023, factors such as lower corporate profitability and the prospect of economic growth became more moderate.
