Foreign direct investment (FDI) in Brazil expanded fourfold between 2005 and last year, from 162.8 billion to 660.5 billion dollars, the country’s central bank said on Thursday.
Even with the exclusion of inter-company loans and transfers estimated by the central bank at 80.9 billion, FDI rose by 256% over the period.
The leading foreign investors in Latin America’s biggest economy are the United States, with 104.7 billion; Spain, 85.3 billion; and Belgium, with 50.4 billion.
Just over 98 billion, or 16.9% of total FDI during the six year period, went to Brazil’s financial sector, while 9% – 52.2 billion – was captured by the beverage industry. The oil and gas sector received 49.5 billion in FDI, 8.5% and 40.6 billion flowed into telecoms.
Brazil will post around $60 billion in additional FDI for 2011, according to the latest projections by the central bank.
The US with its 104.7bn is the biggest foreign investor in Brazil, with assets exceeding China’s by more than 13 to 1, even when Asia’s biggest economy supplanted the US as the country’s main trade partner. Chinese investments totaled 8 billion dollars, putting it in 16th place behind countries including Canada and Mexico.