Foreign investment drops by 30% in January-April

 Foreign investment drops by 30% in January-April

REUTERS/Soe Zeya Tun

According to analysts, Brazil is being hampered by US tax cuts and the domestic political crisis

Brazil is already feeling the effects of the tax reform carried out by the Trump administration in the US. Coupled with a slow economy due to the presidential elections, these changes have brought down productive foreign investment in Brazilian companies.

The DIC (Direct Investment in the Country - a Central Bank index that shows the evolution of purchases and loans by foreign companies to their Brazilian subsidiaries) declined by 30% in the first four months of the year compared to the same period in 2017. In April alone, the volume of productive investment from other countries stood at US$ 2.6 billion, the lowest level for the month since 2006.

Source: Folha de S. Paulo