Brazil rose two positions in the ranking of countries that receive the most investment from abroad, according to the Confidence Index for Foreign Direct Investment, prepared by the consultancy Kearney.
The country jumped from 24th to 22nd position in the world survey, carried out in January.
Despite the progress, Brazil is still a long way from its “golden” times as a destination for foreign investment — in 2012 and 2013, for example, the country ranked third on the list.
“There are good signs of recovery, but we have already been up there in the rankings. As the country’s political and economic situation worsened, investor confidence dropped”, says Sachin Mehta, partner at Kearney Brasil.
“Still, Brazil is not an economy that investors can afford to be out of. It is a different market, with natural wealth and strength in commodities.”
In 2016, the country occupied the 12th place, falling 13 positions in 2018 and leaving the ranking the following year (which counts only the top 25 places). The country returned to the list in 2020, in the same position as the current one (22nd).
Although the country has returned to the list, this may reflect more a fall in other nations than a great Brazilian advance. This year, the estimate is for an inflow of US$ 55 billion in foreign capital, down from US$ 69.2 billion in 2019.
The reasons for the country’s progress in 2022 are the increase in raw material prices and the reduction of restrictions to contain Covid-19. These factors made Brazil grow in the international economic scenario despite challenges such as high inflation, the explosion of interest rates and the risk associated with the next presidential elections.
According to an analysis by XP Investimentos, the main investors on the Brazilian stock exchange in 2022 are foreign investors (53%), institutions (25.4%) and individuals (16.5%).
Brazil is one of the four emerging economies in the consultancy’s ranking. China (10th), United Arab Emirates (14th) and Qatar (24th) also appear in the list of 25 countries. For the 10th year in a row, the United States topped the list. Germany and Canada complete the “podium” this year. Japan and the United Kingdom occupy, respectively, the fourth and fifth positions.
The information is from the newspaper O Estado de S. Paulo.
Source: CNN Brasil
I am Sophia william, author of World Stock Market. I have a degree in journalism from the University of Missouri and I have worked as a reporter for several news websites. I have a passion for writing and informing people about the latest news and events happening in the world. I strive to be accurate and unbiased in my reporting, and I hope to provide readers with valuable information that they can use to make informed decisions.
