Brazil ranks 3rd in FDI Confidence Index<\/p>\n
Despite diminished global economic optimism and concern over
\nthe U.S. economy, global executives will likely continue to
\nincrease their investments abroad, according to the latest FDI
\nCONFIDENCE INDEX(r) report released on by global management
\nconsulting firm A.T. Kearney.<\/p>\n
After US and China, Brazil moves up one spot to the 3rd
\nposition, displacing the United Kingdom and increasing its market
\nattractiveness score. Nearly one-third of the CEOs have a more
\npositive investment outlook toward Brazil compared to only 7
\npercent of executives who expressed a more negative outlook
\ncompared to last year. Brazil was the top destination of choice
\nfor first-tine investments most seriously being considered for
\nthe next three years, with 20 percent of decision-makers
\nexpecting to commit new investments to Brazil. This improvement
\nof perception suggests that investors applaud the sound economic
\npolicies that the government has followed since the 1999
\nfinancial crisis.<\/p>\n
Brazil reportedly attracted a record amount of foreign direct
\ninvestment last year, with US$ 33.5 billion flowing into the
\ncountry, up from US$ 31.5 billion in 1999. Much of the FDI
\nrevenue from Brazil came from the sale of state enterprise, such
\nas banks and telecommunication services. Privatization and
\nsubsequent foreign competition have served as incentives for
\nBrazilian firms to seek higher levels of efficiency. The sale of
\nstate-owned firms has also helped to cut the size of the
\ngovernment. Investment outside of privatisation also peaked in
\n2000, rising by almost 20 percent to US$ 26.5 billion. The record
\namount of non-privatization investment is an important trend for
\nBrazil as the government will not be able to continue to depend
\non privatisation revenues in the future.<\/p>\n
As the world's fifth largest economy, Brazil has a modern and
\ndiversified productive sector and strong financial and democratic
\ninstitutions. Brazil experienced healthy economic growth last
\nyear, 4 percent of GDP compared to only 0.9 percent of GDP in
\n1999. This improvement of growth figures can be credited to
\nexport and industry-led growth. Fiscal and monetary discipline
\nhas kept inflation controlled and government envisions sizeable
\nfiscal surpluses in the primary sector, which in turn will be
\nused to gradually reduce public debt sector debt. Almost one
\nmillion jobs were created in 2000, bringing the unemployment rate
\ndown to 7 percent. In July 2000, under the improved economic
\nconditions, the Central Bank reduced interest rates.<\/p>\n
Spanish CEOs rank Brazil as the most attractive destination
\nfor FDI and indicate a very likelihood of investment. Spanish
\ninvestment was the largest source of FDI into Brazil last year,
\ntopping 21 percent of the country's total inflows and, for the
\nfirst time, surpassing the United States as the largest source of
\nFDI inflows. The largest acquisition in Brazil in 2000 was made
\nby the Spanish firm Banco Santander Central Hispano, which
\nacquired the Brazilian state bank BANESPA for US$ 3.6 billion.
\nAmerican and French executives also indicate a high likelihood of
\ninvestment. Brazil is the second and third most preferred
\ndestination of American and French CEOs respectively.<\/p>\n
Primary-sector executives find Brazil the second-most
\nattractive destination for FDI with 80 percent of primary sector
\nCEOs indicating a high or medium likelihood of investment. The
\nprimary sector ranks Brazil the highest-among all sectors of the
\nemerging giants.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/brazil-ranks-3rd-in-fdi-confidence-index-1447893297",
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"sponsor": "Okusi Associates",
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