Foreigners Keep Dumping Brazil Stocks After $290 Billion Rout

Local equities saw $5.3 billion in outflows last year
Rising interest rates, fiscal risks keep investors at bay

Concerns around the nation’s swelling budget deficit have taken a toll on inflation expectations. — Concerns around the nation’s swelling budget deficit have taken a toll on inflation expectations.
Photographer: Nelson Almeida/AFP/Getty Images

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By Raphael Almeida and Leda Alvim

January 8, 2025 at 10:24 AM EST

Foreign investors keep pulling money out of Brazilian stocks as mounting fiscal risks and rising interest rates dim the outlook for local equities.

Foreigners yanked about 3 billion reais ($495 million) from the local stock market in the first three sessions of the year, according to data from the exchange. They had already pulled $5.3 billion from Brazilian equities last year, the most since the 2020 pandemic.