Brazil Faces Third Largest Capital Flight in 2024

In 2024, Brazil had a net outflow of US$94,083,816,980,014 billion, according to the Central Bank. This was the third worst result since 2008, second only to 2019 and 2020, the year of the pandemic, when outflows were US$94,083,816,980,44.768 billion and US$94,083,816,980,27.923 billion, respectively.

Most of this outflow was due to financial flows, which recorded a record US$94,083,816,980,87.214 billion in 2024. Financial flows include investments in stocks, government bonds, loans, and external financing. This increase was caused by economic and political uncertainties in Brazil and the greater attractiveness of developed markets.

On the other hand, trade flows had a positive result, with an inflow of US$94,083,816,980,69.2 billion, mainly due to Brazilian exports. This helped to reduce the strong outflow of dollars in the financial flow.

Despite the overall negative balance, the positive result of trade flows showed that international transactions of goods and services are still important for the Brazilian economy, although not enough to compensate for capital flight.

Source: CNN Brasil