LatinNews Daily - 10 January 2020

In brief: Record dollar outflows from Brazil

* Brazil’s central bank (BCB) has reported that the country’s foreign currency flows in 2019 were negative with the net result being that US$44.7bn flowed out of the country. This is the highest foreign currency outflow reported by Brazil since the start of the current historical series in 1982. The large outflow of US dollars has been attributed to investors withdrawing US$62.2bn from Brazil’s financial markets following another year of subdued economic growth. After falling into recession in 2014-2016 Brazil posted 1.3% GDP growth in 2017 and in 2018. However, this recovery weakened in 2019 with Brazil’s GDP projected to have increased by just 1.1%.