Cristina Indio do Brasil
Reporter Agência Brasil

Rio - The government statistical bureau (nstituto Brasileiro de Geografia e Estatística) (IBGE) reports that this year there has been a sharp rise in stock market investments by foreigners. From US$851 million (R$2 billion) in the first quarter of 2004, the total has risen to US$2.12 billion (R$ 5.9 billion) during the same period in 2005.

According to Adriana Beringuy, who coordinates National Accounts at the IBGE, that is a positive sign as it means the foreign investor sees the Brazilian economy in a favorable light.

The IBGE also reports an increase in corporate financial inflow to branches in Brazil. It went from US$850 million (R$ 2.1 billion), in the first quarter of 2004, to US$2.9 billion (R$ 7 billion), in the same períod of 2005 – an increase of 242% in what is a type of foreign investment.

Translator: Allen Bennett