Brazil’s FDI pre-pandemic position recovered in 2021and is maintained in the partial balance sheet of 2022. Brazil has got the best historical position was in 2011.
Extensive natural resources, a large domestic market, a strategic geographic location, and a diversified economy are some of the reasons for Foreign direct investment (FDI) in Brazil, and this FDI boomed between 2009-2011.
However, as a result of the COVID-19 pandemic, Brazil saw a substantial decrease in FDI in 2020.
The pandemic brought down investments in the world. Even more so in Brazil. The country was 7th in 2020. But by 2021, Brazil ranked 4th globally with a balance of US$ 50 billion.
In the first few months of 2022, Brazil got a rise of 52% compared to the resources received in the same period of 2021, and the highest value for the period in the last decade. Now, according to the OECD’s 1st quarter report of 2022, Brazil holds 4th place in the ranking of foreign direct investment.
The OECD report for the 1st quarter is the current on the balance of what goes in and out of countries to buy or capitalize companies, among other things. The April document didn’t include Brazil‘s data due to the Central Bank (BC) strike. But the number later came in.
Brazil’s economic outlook
In 2011 Brazil achieved a balance of US$ 97 billion, a nominal value of the time, and the maximum since the beginning of the historical series in 2005. Brazil was in 4th place in 2019, 7th in 2020, 4th again in 2021, and 4th now in 2022.
The chief economist of the Institute of International Finance, Robin Brooks, published on his Twitter profile on Sep. 2022, stating that foreign direct investments are returning to the historical maxims in Brazil and the growth prospects for Brazil in the coming years are very positive.
The proportion of GDP
The balance of foreign investments received by Brazil in 2021 was the highest as a proportion of GDP when considering the 15 biggest economies in the World Bank ranking. The proportion of Brazil was 3.15%, followed by Canada with 3.03%, and the lowest being Italy with 0.4%.
Brazil’s position in this global investment ranking is another sign of the structural recovery of the Brazilian economy.
The economy of Brazil is historically the largest in Latin America. Due to this and other reasons, Brazil is an ideal country to do business.
To register your company, invest or open your bank account in Brazil, let’s go ahead and contact your Damalion expert now.
