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LatinNews Daily - 25 January 2021

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In brief: FDI to Brazil drops in 2020 amid poor global performance

* Foreign direct investment (FDI) to Brazil fell by 50% in 2020, according to preliminary figures reported in an Investments Trend Monitor published by the United Nations Conference on Trade and Development (Unctad). According to Unctad, FDI to Brazil fell to US$33bn last year “as the privatisation programme and infrastructure concessions paused during the [coronavirus] pandemic crisis”. Unctad cites transportation and financial services as the worst-hit sectors, with falls in inflows of 85% and 70% respectively, followed by the oil & gas extraction industry and the automotive industry, which both saw a preliminary 65% decline in inflows. Across South America, FDI fell by 46% to an estimated US$60bn, while foreign investment inflows slumped by 37% in Latin America and the Caribbean. Globally, FDI plummeted by 42% last year due to the impact of the coronavirus (Covid-19) pandemic, with developed economies the hardest hit, and a weak outlook for 2021.