The charms of Brazil attracts UK business
By Daniel Hunter
The UK is now the second largest investor into Brazil after the US, fuelled by a wave of confidence in the attractiveness of the country as a place to do business, according to Ernst & Young’s first annual Brazilian Attractiveness Survey.
The report combines an analysis of foreign direct investment (FDI) around the world into Brazil since 2007, with a survey of 250 global executives, on their views on the country as a potential place to do business, both now and in the future.
While the US still tops the investment league tables for Brazil, UK investors created 21,040 jobs in the Brazilian economy. This job creation came from 45 investment projects, valued at over US$12b in 2011 — almost 1% shy of the total value of all US projects in the same year and 9% of all total foreign direct investment (FDI) into Brazil.
The total number of UK projects in Brazil last year (45) was up 125% on 2010, propelling the UK from fifth to second in just 12 months, with the US leading at 149 projects. 58% of total FDI projects from the UK were in the Southeast region of Brazil, primarily Sao Paulo.
“A stable economy, growing middle-class, burgeoning domestic market and huge untapped reserves of natural resources, have led UK investors to become increasingly interested in Brazil as an investment destination,” Ernst & Young’s UK Chairman and managing partner Steve Varley, said.
Of those executives surveyed in UK companies (50) more than half said they are considering establishing or developing their business in Brazil in the near future. Nearly 80% believed the country’s attractiveness as an investment destination would improve in the next three years.
A ‘steel’ for the UK!
The business services sector in Brazil attracted the largest number of projects (17 in total - 38% of total UK... continued on page two >