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Foreign Investment Announced at $ 17.9 Billion in Q2

International affairs

36 projects from five countries were identified; France tops the ranking with $ 8.6 billion

On the second quarter of 2019, 36 foreign direct investment (FDI) projects were identified in Brazil, from 22 companies from five countries: United States (US), China, Japan, France and Italy.

The information is part of the second edition of the Foreign Investment Bulletin - Selected Countries , published by the Executive Secretariat of the Foreign Trade Chamber (Camex), for the period from April to June this year. The first issue, with data from January to March 2019, had been released in April by the Ministry of Economy.

In the second quarter of 2019, of the total of projects, 28 are confirmed investments with approximately US $ 15 billion. When considering also announced investments and not yet confirmed, the total amount rises to $ 17.9 billion.

France is highlighted in values

In terms of confirmed investment figures, France was the country that stood out in the quarter ($ 8.6 billion), followed by Italy ($ 4.2 billion) and Japan ($ 2 billion). China and the US had the lowest numbers, with $ 213 million and $ 131 million in investments, respectively.

In confirmed projects, among the five countries, Japan and the USA made the most announcements, totaling seven investments each, in the period analyzed. France and Italy have confirmed six projects each. China, despite announcing four investments, has confirmed only two projects so far.

Stock

Between 2003 and the second quarter of 2019, the number of US company projects accounted for 45% of the total of the five countries. The number of Japanese investments comes next, with 20% of the total raised.

In terms of value, US investments in the period totaled US $ 81 billion, close to that of Chinese investments, which totaled US $ 79 billion. Following are the Japanese investments, which represent $ 35 billion; the French, with $ 30 billion; and the Italians, with $ 21 billion.

It is noteworthy that in this period since 2003 only 14% of the investments of these five countries have been in new production units.

Methodology

Confirmed investments are contributions to enterprises in Brazil, the information of which can be confirmed by more than one data source, including institutional pages of companies or institutions directly involved.

Advertised investments are formal announcements of future investments, which are followed by the market and interested institutions.

When an investment that has been computed in the “Advertised” group is confirmed, its value leaves that group and becomes the “Confirmed” group.

The methodology applied is the same developed to map Chinese direct investments, which were published in seven editions by the end of 2018. It is a work of collecting information from various sources in the press and in unofficial databases.

Prepared by the Executive Secretariat of the Foreign Trade Chamber (Camex), the document is available for reading and download in Portuguese and English. The choice of countries was based on Camex having Memoranda of Understanding and Cooperation with these five countries.

The newsletter collects a sample of investments from a variety of sources, and while it may not reflect all of the investments in these selected countries, it outlines the trend in foreign direct investment (FDI) in Brazil between 2003 and the first quarter of 2019.

The Foreign Investment Bulletin provides detailed charts for easy understanding and reading.