Brazil is investors third preferred country
O Estado de S. Paulo 09/07/10
Brazil has surpassed the United States and all Europe and it is already the third favorite destination of multinationals planning to invest until 2012. The data were announced yesterday by the United Nations Conference on Trade and Development (Unctad), from a survey made on an annual basis with 236 multinationals and 116 investment promotion agencies throughout the world. According to the survey, multinational companies bet on a significant increase in the flow of investments in the world in the next two years. The crisis has, nevertheless, left it legacy. For the multinationals, nine of the 15 countries preferred countries to invest in the next two years are in emerging regions.For the first time since the survey started being made ten years ago, the four BRIC countries (Brazil, Russia, India and China) are among the five preferred locations of the private sector to invest. Brazil stood for a growing interest of the multinationals for the production of raw materials (commodities) and due to the Brazilian domestic market. Based on a global growth of 3% in 2010 and 3.2% in 2011, the UN estimates the investments made by multinational corporations should stay in US$ 1.2 trillion in 2010. It may reach US$ 1.5 trillion in 2011, going to something between US$ 1.6 trillion and US$ 2 trillion in 2012. After two years of decline, much of the growth should be attributed to an increase in the number of mergers and acquisitions. As regards the investment in new plants and in production it may still be limited.
Given the global crisis, the investment rate fell 50%. More than 100 of the more than 230 multinationals that took part in the survey identified China as a priority in their investments. In second place comes India, with little more than 70 companies. Brazil appears in third, one position above its past classification achieved in 2009 with 70 companies indicating the country as their priority. Brazil has surpassed the USA, ranking fourth for the first time.
The list of the top five in the assessment of the multinationals is completed by Russia, with less than 40 multinationals placing it as priority. Mexico appears in sixth, followed by the United Kingdom, Vietnam, Indonesia and Germany. "The result of the survey shows the attractiveness of the developing countries and that such companies are confirming the emerging markets as a priority, to the detriment of the developed countries", says the Unctad in its report. "Different levels of economic performance in the world after the crisis have shaped the perspectives of investment in the world. Developing regions have shown to be more resistant to the crisis than the developed countries", says the report.