Analysis

Evolution of foreign investment in Brazil

Investment History in Brazil

With the process of globalization becoming part of Latin America, capital flow has been easier and investments have increased in Brazil. Currently, Brazil is competing for foreign investments with other emerging economies, such as India, China and South Africa.

Due to the recent Brazilian economic crisis, in 2014 the foreign direct investment fell 22.9% from US$96.9 billion to US$ 74.7 billion in 2015. After a recovery in 2016, and another fall in 2017, the foreign direct investment growth to US$ 77.0 billion in 2018 and is expected maintain US$ 80.0 billion in 2019/20, and to growth to US$ 84.8 billion in 2021.

Source: Deloitte – Research (data from BCB)

In 2018, the sectors with the largest investments were Oil and Gas, Vehicles and Financial services representing 11%, 10% and 9%, respectively.

Source: Deloitte – Research (data from BACEN)

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