Brazilian-American Capital and Investment Exchange Analysis
20
III. AMERICAN FDI: IMPACTS ON JOB
CREATION IN BRAZIL
Total announced American FDI into Brazil increased at a
steady pace between 2003 and 2015, ending at US$69.3
billion. Meanwhile, the number of announced jobs generated
by this FDI was 142,077. This represented 4% of the United
States' total announced global FDI and 2.8% of all the
resulting worldwide jobs, and 20.3% of Brazil's FDI and 19.3%
of its announced consequent jobs. Due to this scenario, by the
end of the period Brazil was the ninth largest destination for
announced U.S. FDI in the world, while the United States was
the largest source of announced FDI in Brazil.
As of 2014, the average annual investment announced by
the United States in Brazil was US$5.7 billion, while around
11,000 resulting jobs were announced per year. This means
that, on average, around two jobs were generated for every
US$1 million invested. In addition, the highest average FDI
announced by the United States in Brazil was in the four-year
period 2008-2011: around US$8.4 billion per year. This period
was also responsible for the highest average number of jobs
announced: approximately 17,780 per year.
IV. MAIN SECTORS AND COMPANIES
The most notable sectors in the period were Communications,
Metals (especially aluminum, iron and gold mining) and
Automotives, which together corresponded to 45% of the
FDI and 30% of the related jobs announced. In the Other
category, it is worth noting the Software & IT Services sector,
which accounted for 10.4% of the announced jobs, and which
generated nearly eight jobs for every US$1 million invested,
well above the 10 main sectors listed below.
Up to 2014, the average annual
investment announced by the
United States in Brazil was
US$5.7 billion, while around
11,000 resulting jobs were
announced per year.
Sector
Communications
Metals
Auto Assembly
Oil & Gas
Chemicals
US$ million
20,000
18,000
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
5,546
15,490
2,274
6,698
3,483
8,227
772
6,895
2,196
3,917
8,963
■FDI Announced - US$ millions
Source: FDI Markets / * Up to Januarys
6,756
Announced U.S. FDI in Brazil: Investment and Jobs
7,931
17,723
16,102
19,005
18,264
10,104
0
2003 2004
2005 2006 2007
2008 2009 2010 2011
2012
2013
2014 2015*
■Number of Jobs Announced
FDI Announced by the USA in Brazil: Announced Amount and Jobs
(Accumulated Amount, 2003-2015*)
Announced Amount
Share (%)
(US$ million)
Number of Jobs
Announced
Share (%)
Jobs per US$1
Million Invested
14,720
21.2%
7,476
5.3%
0.5
8,971
12.9%
12,624
8.9%
1.4
8,030
11.6%
22,827
16.1%
2.8
Financial Services
6,082
8.8%
2,435
1.7%
0.4
Renewable Energy
5,637
8.1%
2,002
1.4%
0.4
4,435
6.4%
2,713
1.9%
0.6
2,893
4.2%
6,476
4.6%
2.2
Food & Tobacco
2,734
3.9%
7,599
5.3%
2.8
Paper & Packaging
2,103
3.0%
3,329
2.3%
1.6
Industrial Machines & Equipment
1,816
2.6%
7,700
5.4%
4.2
Other
11,939
17.2%
66,896
47.1%
5.6
Total
69,360
100.0%
142,077
100.0%
2.0
Source: FDI Markets / * Up to January
21
5,770
13,246
5,782
7,637
5,440
7,782
344
1,091
No. of jobsView entire presentation