Business

Brazil’s slow recovery tests foreign investors appetite

Offshore investors pulled 4.7 billion reais ($1.2 billion) out of local equities in 2019, according to data from the stock exchange. Excluding money generated by equity sales, the outflow jumps to 44.5 billion reais, the worst since at least 2004. Although benchmark Ibovespa climbed more than 30% in 2019, the slower-than-expected pace of growth in Latin America’s largest economy discouraged foreigners, burned after emerging markets from India to Argentina didn’t deliver on pledges of reforms. Local investors, hungry for returns as interest rates fall to record lows, have picked up the slack.

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Source: Exame