Brazilian-American Capital and Investment Exchange Analysis

8 92.8% Stock of FDI in the United States by Origin - Selected Emerging Economies, 2012 Mexico 0.56% India 0.19% China 0.19% Brazil 0.13% 6.6% South Africa 0.05% O Turkey 0.02% Rest of Latin America and Caribbean 2.82% Other 2.83% Developing Economies II. EMERGING ECONOMIES INVESTING IN THE USA: BRAZIL IN FOCUS According to UNCTAD6, in 2012 the United States economy had a total stock of foreign direct investment (FDI) of around US$2.6 trillion. Of this total, 92.8% was originated in developed economies and 6.6% came from developing economies. Observing certain selected emerging economies - South Africa, China, India, Mexico and Turkey - and comparing them with Brazil, one can see that Mexico was the leading investor in the U.S. economy in the analyzed period, accounting for 0.56% of the total stock of FDI in the USA. China and India were tied for second place, with 0.19%, while Brazil came in third place, with a 0.13% share. South Africa and Turkey had very minor shares of FDI in the United States: 0.05% and 0.02%, respectively. From 2001 to 2012, Brazilian investment flows into the United States rose considerably, from a deficit of US$282 million to a surplus of US$5.8 billion. South Africa and Turkey maintained a negative or very low evolution of FDI flows to the USA in this period. Mexico stood out in all the three-year periods, increasing its economic interdependence with the country. Particularly in the second three-year period, China and India began to grow steadily, reaching US$3.1 billion and US$2.4 billion, respectively, in flows into the United States in the last period. Although Mexico held the largest stock of investments in the USA, Brazil was the emerging country whose FDI flows to the country increased the most between 2001 and 2012, easily surpassing China, India, South Africa and Turkey, especially in the last three-year period analyzed. Brazil was the emerging country whose FDI flows to the USA increased the most between 2001 and 2012 US$ million 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 -1,000 -2,000 Developed Economies Source: UNCTAD FDI Flows into the United States by Origin: Selected Emerging Economies -219 -282 65 287 271 3,806 σε -195 1,185 611 1,588 1,617 59 -104 -769 1,008 2,452 3,491 18 925 5,808 3,115 2,434 5,482 -14 6 United Nations Conference on Trade and Development 2001-2003 South Africa 2004-2006 2007-2009 Mexico 2010-2012 Brazil China India Source: UNCTAD 900 700 500 300 100 - 100 - 300 - 500 700 Turkey World US$ billion (World) 9

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