Brazilian-American Capital and Investment Exchange Analysis slide image

Brazilian-American Capital and Investment Exchange Analysis

18 II. UNITED STATES: ONE OF THE MAIN SOURCES OF FDI IN BRAZIL In 2012, Brazil's total stock of FDI was US$746 billion. The largest share of this amount (88.96%) came from developed economies. Developing economies accounted for 11%, while economies in transition and investment with an unspecified origin represented the remainder, of around 0.04%. The United States accounted for the second largest share of FDI in Brazil (15.2%, or US$113.4 billion), behind only the Netherlands (US$212.5 billion). FDI inflows into Brazil rose significantly between 2003 and 2012, from US$9.3 billion to US$65.2 billion. The highlight was the three-year period of 2010-2012, when the average annual inflow was US$60.1 billion. FDI inflows from the United States increased from an average of US$2.9 billion from 2003-2005 to US$8.1 billion over the last three-year period. However, between the first and last three-year period, there was a decline in the United States' average share of FDI inflows into Brazil, from 20.6% to 13.5%, reflecting a diversification of foreign investment origins over the course of the decade in question. The large growth in FDI in Brazil originating from Europe explains the fall in the U.S. share. Between 2003-2005 and 2010-2012, Europe's average share increased from 45.2% to 58.8%. In the last years, the United States accounted for the second largest share of FDI in Brazil, behind only the Netherlands. US$ million 70,000 60,000 50,000 18% 19% 40,000 30,000 20,000 10,000 9,320 1,720 18,570 3,455 15,045 3,673 15,373 2,192 11.00% 88.96% Developed Ecnomies. Source: UNCTAD 24% 14% 2,851 26,074 Stock of FDI in Brazil by Origin, 2012 Developing Economies FDI Inflows into Brazil by Origin 30,064 11% 7% 19,906 6% 2,207 11% 48,506 8% 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 World United States Source: UNCTAD 1,277 US Share 5,348 5,572 13,509 0% 5% 09 10% 272 25% 21% 20% 15% Share 30% UNITED STATES 15,2% 19
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