Data from the Central Bank of Brazil show foreign investors withdrew $2.71 billion from Brazilian stocks in March 2025.
This outflow, while smaller than March 2024s $3.42 billion, signals persistent caution among international investors.Over the first quarter, equity outflows reached $66 million, suggesting a less severe but ongoing trend.
Fixed-income securities also saw foreign capital exit, with a negative balance of $841 million in March.This shift contrasts with last years $3.23 billion inflow for the same month.
The first quarters cumulative outflow in fixed income reached $3.16 billion, highlighting a notable reversal in sentiment.Investment funds, however, attracted $1.77 billion in foreign capital in March, a marked increase from $118 million a year earlier.
For the quarter, these funds saw net inflows of $1.81 billion, offering a rare bright spot.Direct foreign investment, which supports productive sectors, dropped to $6 billion in March from $10.2 billion last year.
The first quarters $21.8 billion in direct investment marked an 11.6% year-over-year decrease.March 2025 Sees Major Outflows from Brazilian Equities and Bonds.
(Photo Internet reproduction)This slowdown comes as Brazils current account deficit widened to $19.67 billion for the quarter, a 60% jump from 2024.
These shifts reflect global uncertainty, changing US trade policies, and recalibrated risk appetites.While Brazils economy still draws capital, volatility and external pressures now shape the flow and direction of foreign investment.
The numbers reveal a market adjusting to new realities, where investors weigh opportunity against growing risk.