Analysis

Evolution of foreign investment in Brazil

Investment History in Brazil

From the 1960s to 1980s, Brazil received large amounts of foreign direct investment, but it lost its position to Eastern European countries coming out of communism.

With globalization, capital flow has been easier and investments have increased. Currently, Brazil is competing with emerging economies, such as India, China and South Africa.

Due to the Brazilian economic crisis, in 2014 the foreign direct investment fell 22.9% from US$96.9 billions to US$ 74.7 billions in 2015. After a recovery in 2016, the foreign direct investment is expected to stabilize around US$ 75 billions in 2017 and 2018, resuming its growth in 2019.

Among the sectors with the largest investments, Financial Services and Food and Beverages were highlights, representing 20% and 15%, respectively.

(*) CAGR: Compounded Annual Growth rate (CAGR) is a business and investing specific term for the smoothed annualized gain of an investment over a given time per

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