Brazil returned to the list of the 25 countries most selected for foreign direct investment (FDI), according to an indicator produced by the North American consultancy A.T. Kearney, released on Tuesday (16).
After leaving a list last year, the country is a single nation in Latin America or compares a list in the 2020 ranking. For the eighth consecutive year, the United States leads as the most attractive country for foreign investments, followed by Canada, Germany , Japan and France. Complete a list of the first ten tests, in order: United Kingdom (6th), Australia (7th), China (8th), Italy (9th) and Switzerland (10th).
The Kearney Foreign Direct Investment Confidence Index (FDI) is an annual survey of executives from the 500 largest companies in the world since 1998. Surveys are calculated based on questions about the probabilities of companies interviewed who make a direct investment in market in the next three years. A variable score on a scale of 1 to 3. In the case of Brazil, the score was 1.65.
“After leaving the 2019 ranking, Brazil resumes a position this year, ranking 22nd. Among the factors that drive or the investment feeling are passing the pension reform and government investments to expand as privatizations, which should stimulate the growth of the economy “, says the Kearney report on Brazil’s performance.
A consultancy defines foreign direct investment as investing capital for a foreign company in a company in a different country. It is the same concept defined by the United Nations Conference on Trade and Development (Unctad), which deals with “an investment that involves a long-term relationship and shows an interest and duration control by an entity resident in an economy (foreign direct investor) or parent company) of a company resident in another economy (IDE) company or affiliated company or foreign company) ”
See a complete list of the Foreign Direct Investment Confidence Index (FDI) 2020.
Effects of the pandemic
The Kearney survey was carried out between January 27 and March 3, before the pandemic exclusion of new coronaviruses, and the effects of the global crisis were partially captured, without final interviews.
“At the beginning of the research period, before the virus spread, business leaders were reasonably optimistic about the global economy and the future of direct investment. Covid-19 appeared to be contained in Asia. In fact, more investors said they were more optimistic over the next year than last year. However, when investors realized they were ‘getting into the storm’ in the last two weeks of the survey, investor confidence predictably decreased in all sectors – for developed, emerging and frontier, reflecting the rapid outbreak of the pandemic, “says Kearney in his report.
According to the consultancy, investors began to prioritize the indication of large and stable markets, with more predictable political and regulatory structures. For Kearney, the scenario favors the reorientation of investments towards more developed economies, a trend that has already been verified in recent years.