Foreign capital inflows into infrastructure activities in Brazil grew more than 500% in the first four months of this year compared to the same period in 2016, reaching a mark of US$ 11.4 billion. The flow represents more than 50% of direct investment in the country for capital participation operations registered by the Central Bank (BC) from January to April, a total of US$ 21.5 billion.
Market analysts are projecting, however, that this performance may decline sharply as a result of the new political crisis directly involving President Michel Temer, although this reaction does not mean that investors and infrastructure operators are giving up on the country.
“Basically when an investor is going to put money into a project, he considers risks and returns, both are measurable,” said economist Cláudio Frischtak. “As long as this veil of uncertainty is not lifted, investors will wait,” he said. “That does not mean giving up, I do not know anyone who has given up the country.” Frischtak specializes in the infrastructure area of Inter.B consulting.
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