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Foreign direct investment in Brazil grows 68% and places the country as the third most attractive destination in the world, according to an OECD report

Written by Bruno Teles
Published 29/04/2023 às 14:28
foreign investment
Photo: investment

Brazil has become the world's third largest destination for foreign direct investment (FDI), according to a report released by the Organization for Cooperation and Development (OECD) in 2022.

The OECD presented data showing that foreign direct investment in the country increased by 68% to US$ 85 billion, second only to the United States ($318 billion) and the China ($180 billion). This growth offoreign direct investment in Brazil is attributed by the report to reinvestments of corporate earnings and changes in corporate debt.

It is important to mention that the expansion of Brazil contrasts with the 24% drop in global FDI, reaching US$ 1,286 billion. The report points out that this is due, in large part, to the withdrawal of capital from a large multinational from Luxembourg. Without the country in the calculation, the FDI in the world had a reduction of 5% in 2022.

The OECD highlights that the drop in global FDI flows occurred mainly in the last quarter of 2022, 95% below the previous quarter

The entity also states that international merger and acquisition (M&A) activities continued on a downward trajectory last year, due to geopolitical tensions, financial tightening and a growing risk of recession.

The numbers of direct foreign investment show that Brazil is emerging as an attractive destination for international investors. The country has a diversified economy and is a leading producer of commodities, which makes it an ideal target for foreign investments.

The OECD report also highlighted Brazil as one of the countries with the greatest potential for economic growth in the global financial market.

This emphasis is given, mainly, by the measures adopted by the Brazilian government, with the objective of facilitating the entry of international investors and encourage more foreign investments.

Among the actions taken by the government is the simplification of regulatory processes and the implementation of economic policies that favor the financial market. The goal is to increase Brazilian participation in the global market and guarantee the country's economic growth.

O Brazilian government it has also been working on improving infrastructure to attract new projects and creating mechanisms to simplify business registration processes. All this is aimed at facilitating the entry of new foreign investors in the country.

The OECD report is a reliable indication for investors looking to invest in new markets

The organization brings together representatives from countries with high levels of economic and social development, which demonstrates the reliability of the report presented.

In summary, the OECD report highlights that Brazil is one of the countries with greater potential for economic growth in the global financial market and has stood out as an attractive destination for foreign investment. O Brazilian government has worked hard to streamline regulatory processes, improve infrastructure and expand Brazil's share of the global market, which further strengthens the country's position as a destination for foreign investment.

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Bruno Teles

I talk about technology, innovation, oil and gas. I update daily about opportunities in the Brazilian market. With more than 3.000 articles published in CPG. Agenda suggestion? Send it to brunotelesredator@gmail.com

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