FDI in Brazil
FDI in Figures
Brazil is world’s number one destination of FDI flows in Latin America. After breaking its FDI record in 2008, the influx slowed down in 2009 due to the global economic crisis but it has resumed growth since. Brazil has become the 4th international investor among emerging countires and the 1st in Latin America. This country's appeal to international investors is due to different factors:
- A market of almost 200 million inhabitants;
- A booming economy;
- Easy access to raw materials; and
- A diversified economy, therefore one less vulnerable to global crises.
|Foreign Direct Investment||2007||2008||2009|
|FDI Inward Flow (million USD)||34,585||45,058||25,949|
|FDI Stock (million USD)||309,668||287,697||400,808|
|Performance Index*, Ranking on 141 Economies||101||90||87|
|Potential Index**, Ranking on 141 Economies||71||67||-|
|Number of Greenfield Investments***||154||250||271|
|FDI Inwards (in % of GFCF****)||14.5||14.7||41.5|
|FDI Stock (in % of GDP)||22.7||17.6||25.5|
Note: * The UNCTAD Inward FDI Performance Index is Based on a Ratio of the Country's Share in Global FDI Inflows and its Share in Global GDP. ** The UNCTAD Inward FDI Potential Index is Based on 12 Economic and Structural Variables Such as GDP, Foreign Trade, FDI, Infrastructures, Energy Use, R&D, Education, Country Risk. *** Green Field Investments Are a Form of Foreign Direct Investment Where a Parent Company Starts a New Venture in a Foreign Country By Constructing New Operational Facilities From the Ground Up. **** Gross Fixed Capital Formation (GFCF) Measures the Value of Additions to Fixed Assets Purchased By Business, Government and Households Less Disposals of Fixed Assets Sold Off or Scrapped.
FDI Inflows By Countries and Industry
|Main Investing Countries||2009, in %|
|Main Invested Sectors||2009, in %|
- Form of Company Preferred By Foreign Investors
- Very large companies, mergers and international acquisitions. The sociedades anonimas are the legal form of company preferred by foreigners.
- Form of Establishment Preferred By Foreign Investors
- Main Foreign Companies
- Renault, Peugeot, Carrefour, Casino, Mc Donalds, Zara, General Motors.
- Sources of Statistics
Central Bank of Brazil
Why You Should Choose to Invest in Brazil
- Strong Points
- Brazil has Universities that perform just as well as their counterparts in the OECD and a very big manpower reserve educated to all levels. It also has extensive raw material resources. A number of sectors offer good business opportunities. The Brazilian economy is diversified and more and more manufactured goods are produced and exported. The potential of the Brazilian domestic market as well as the low cost of labor are elements which may attract foreign investors.
- Weak Points
- Despite being open to world trade, several administrative barriers cripple international trade. Valuing the real against the dollar automatically reduces the country's competitiveness against Asian competitors in some sectors. The Labor laws are very onerous, involving substantial costs to foreign companies and keeping a good part of the local business in the informal sector.
- Government Measures to Motivate or Restrict FDI
- The Brazilian government encourages and promotes FDI. Most of the barriers to foreign investor activity have been removed particularly on the stock market. A very large number of public companies have been privatized and many sectors deregulated over the last fifteen years.
Any Comments About This Content? Report It to Us.
No content has been posted to this folder yet.
Be the first to feature your expertise related to FDI in Brazil!
- Post any content you may have that features your expertise, such as a text article with business tips, presentation, market report, etc
- By sharing your knowledge you gain more visibility for your profile not only on GlobalTrade.net but across the web
Post your content now by simply clicking on the button below.
Check these folders already populated with content posted by other users:
Click here to find out more about key benefits and instructions for contributing to the site.
Post any content you may have that features your expertise and offers valuable information to the international trade community.
The more informative content you post the more visible your will be, as your valuable content will link directly to your profile.
Check these sample pages for illustration: