São Paulo – The total portfolio of foreign direct investment (FDI) in Brazil reached US$ 660.5 billion on December 31st last year, according to the Census of Foreign Capital in Brazil, issued this Thursday (15th) by the Central Bank. The figure includes US$ 579.6 billion worth of foreign stakes in Brazilian companies and US$ 80.9 billion worth of intercompany loans. The total figure was equivalent to 30.8% of the 2010 Gross Domestic Product (GDP).
In the former case, the value of foreign stakes in Brazilian companies increased by 256% in comparison with the preceding Census, which was held in 2006. Loans by foreign mother companies to their branches and subsidiaries in Brazil were counted in for the first time, so there is no basis for comparison, according to the Central Bank.
According to a press statement issued by the institution, 13,700 companies received FDI. The figure is 22.4% lower than in the 2006 Census, but according to the Central Bank that was due to a change in survey methodology. Now, only the direct beneficiaries of investment are considered, whereas before, associated companies were included as well.
The main sources of investment, following the final investor criteria – which excludes the immediate origin of the funds, which may be a tax haven or an international financial centre –, were the United States, Spain, Belgium, Brazil itself, the United Kingdom, France, Germany, Japan, Italy and Mexico. According to the Central Bank, Brazil appears on the list because the data include investment by foreign companies which own stakes in Brazilian companies.
The majority of the portfolio concentrates on the services sector, followed by industry, mineral extraction and agriculture. Within those, the bulk of investment is in banking and related services, beverage companies, oil and gas extraction companies, and telecom services providers.
*Translated by Gabriel Pomerancblum
