LatinNews Daily - 24 September 2020

In brief: FDI in Brazil plunges in August

* Brazil’s central bank (BCB) has released its latest external sector statistics, which reveal a sharp drop in foreign direct investment (FDI) in the country. FDI in August this year totalled US$1.4bn, down from US$9.5bn in August 2019 – an 85% decline. This also represents a decline on FDI received in July. FDI in the 12 months to August totalled US$54.4bn (equivalent to 3.51% of GDP), down from US$62.6bn in the 12 months to July, and the lowest FDI figures recorded for the 12-months-to-August period since 2010. FDI in Brazil plunged with the onset of the coronavirus (Covid-19) pandemic earlier this year, but local analysts believe that growing misgivings over the Brazilian government’s failure to uphold environmental commitments might further deter foreign investors and drive capital flight.