Brazil and Bric countries to receive more investments in five years
Valor Econômico - 06/17/2008
Brazil and the other Bric countries (Russia, India and China) will probably be chosen, in the next five years, as destination of investments from the great global companies. A KPMG International's research, with more than 300 companies in 15 countries, shows that 14% of them intend to make "significant investments" in the country in the 2013/2014 period, more than the current 10%. With that, Brazil may go from eighth to sixth place in the ranking. According to the study, China will remain in the leadership, overcoming the USA, the current leaders. In five years, 24% of the companies intend to invest heavily in Asia, a long jump compared to the current 17%. Russia and India will t ake the third and fourth places, respectively. For Ericson Amaral, managing-partner of the area of international taxation of KPMG, the stronger growth in recent years helps explain the perspective of increasing investments of the great global companies in the country. He notices that, according to the research, the access to new customers is the main factor the companies take into account to define in which countries will invest their resources. "Brazil has an enormous growth potential that has been reasonably coming true in recent years. The domestic market is one of the most important assets". Amaral recalls Brazil also has a good position in relation to the second most important criterion taken into account by the corporations researched by the KPMG study: political stability. The fact that Brazil has taken longer to seek stronger growth rates explains why the country appears behind the other Bric countries in the research figures, assesses Amaral. The study also shows the sectors that may receive the most investments. In Brazil, instead of what might be expected, these are not the sectors related to the production of commodities that are most benefited from the inversions of the companies surveyed by KPMG. The segment of industrial products may receive 25% of the investments in 2013/2014 period, far more than the current 13%, whereas the manufacturing sector may increase its share from 11% to 20%. The investments in the sector of Services offered to Companies may grow from 8% to 16% and the sector of Financial Services, from zero to 8%. On the other hand, the investments in Mining and Public Services tend to fall from 17% to 14%.