- Posted by Marina
With the help of federal enterprises privatization program, Brazil rose from sixth to fourth place among the leading foreign investment destinations in the world in 2019, informs the "Agency Brazil." According to a report released on Monday (20) by the United Nations Conference on Trade and Development (Unctad), Brazil received US $ 75 billion in foreign investment last year, up from $ 60 billion in 2018.
The first three places in the ranking investment destination were with the United States, with US $ 251 billion last year; China, with US $ 140 billion and Singapore with US $ 110 billion. The $ 75 billion that arrived in Brazil amount to more than half of the $ 119 billion that South America received last year.
According to the report, part of the rise in foreign investment in Brazil occurred in part because of the privatization program, which focused on the sale of state-owned subsidiaries and shareholdings of the government in private companies.
"Brazil increased by 26% to $ 75 billion, partly driven by the privatization program launched in July as part of the administration's efforts to accelerate the economy. The first of these privatization involved a gas distribution company - Associated Gas Carrier - purchased by a consortium of investors led by the French Engie for nearly $ 8.7 billion, "said the survey.
For this year, the report says the country should continue to receive foreign investments because of the continuity of the privatization program. "In 2020, disinvestment in state-owned companies of subsidiaries should gain strength; the privatization of large companies such as Eletrobras, the largest electricity company in Latin America, and Telebras should probably attract more foreign direct investment, "the document adds.
In addition to the privatization, the report cites the projects related to the environment as factors that will help to increase foreign investment in Brazil this year. "Preliminary data on investments in the green area in the country announced support this perspective, the value of projects more than doubling, compared to 2018, especially in renewable energy and in the automotive industry," says UNCTAD.