North American FDI into Brazil continues to fall

Greenfield investment monitor fDi Markets has recorded a year-on-year decline of FDI from North America into Brazil between 2011 and 2015. Brazil is consistently one of Latin America’s most prominent magnets for North American investment, second only to Mexico. It accounted for 27.37% of capital investment from US and Canadian businesses between 2011 and 2015.

During 2011, 165 investment projects from North American into Brazil were recorded. This figure has subsequently declined year-on-year, with 2015 showing only 65 projects, a fall of 60.61% on 2011. The US was the biggest source country in North America for Brazil’s inward investment, accounting for 92.66% of the projects. Between 2011 and 2015, US projects into Brazil fell from 150 to 64, a decline of 57.33%. Job creation in Brazil as a result of North American investment has also declined during this period. In this case, 20,570 jobs were created during 2011. This decreased 72.81% year-on-year to 2015.

Between 2011 and 2014, fDI Markets recorded a year-on-year decrease in capital investment from North American companies. However, 2015 saw a recovery to 6.47bn, an increase of 7.65% on 2014 figures. The US accounted for 24.64% of global capital investment into Brazil between 2011 and 2015, making it the top source country for investing in Brazil. The first eight months of 2016 suggest that a downward trend will set in. Between January and August, 48 projects into Brazil from North America were recorded. Similarly, capital investment has seen a decrease of 41.70% comparing with the first eight months of 2015, while job creation has fallen by 30.47% year-on-year.