INSUBCONTINENT EXCLUSIVE:
Brazil faces unprecedented capital outflows in 2024
Investors withdrew $56.21 billion between January and October
It signals a significant shift in investor confidence and economic policy.The Brazilian real has depreciated by over 20% against the US
This sharp decline triggered substantial investment outflows to the United States
The trend gained momentum throughout the year.Many experts believe it may persist in the foreseeable future
Global economic shifts contributed to this capital flight
The strong US dollar encouraged a shift away from emerging markets like Brazil
Domestic factors also played a crucial role in the outflows.Brazil Suffers Largest Financial Exodus in its History
(Photo Internet reproduction)Brazil grappled with implementing measures to balance public accounts
maintained a hawkish stance throughout 2024
Policymakers increased the benchmark Selic rate to 12.25% in December.It contrasted with earlier expectations of rate cuts
The move aimed to combat inflation and support the weakening currency.Foreign investors pulled out R$30.7 billion ($5.39 billion) from
Critics argued his administration relied too heavily on government spending to boost growth.The situation mirrored trends in other emerging
However, the scale of outflows appeared more pronounced in Brazil
Yet this growth relied heavily on constant state intervention
Inflationary pressures persisted, particularly in the services sector
