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Brazil Takes Lion's Share of FDI in Latin America and Caribbean - Brazil Business Today

May 10, 2011

By: Phillip Lee
Editor, Brazil Business Today

Brazil is the confirmed favorite of foreign investors in Latin America and the Caribbean, claiming over 43% of the region's US$112.6 billion of foreign direct investment (FDI) in 2010. The region itself showed the strongest growth worldwide, with a 40% year-on-year increase in foreign inflows.

Raking in some US$48.4 billion, Brazil was well ahead of Mexico, which came in second place with US$17.7 billion dollars in foreign investment. Chile ranked third, with FDI of US$15 billion. Brazil's inflow surge represents record growth of 87%. In 2009, the country's FDI stood at US$25.9 billion.

The United States remains the main investor in the region, responsible for 17% of incoming FDI. Brazil is likely to see more Chinese investment in coming years, following President Dilma Rousseff's visit to China in April. She also expects more income from Germany. President Rousseff asked visiting German President Christian Wulff last week to invest in sports facilities needed for the 2014 World Cup and 2016 Olympics to be held in Brazil.

The United Nations' Economic Commission for Latin America and the Caribbean, which released the FDI figures on May 4, also reported that Brazil invested US$11.5 billion abroad in 2010, just behind Mexico who saw outflows of US$12.7 billion.

Comments and questions: phillip@brazilbusinesstoday.com'

Currently living in Brazil, Phillip Lee has an MBA in Finance and International Business and has had a distinguished twenty-year career in mergers & acquisitions, strategic market entry and financial management in some of the world's fastest growing economies.