Brazil Increases Its Appeal to Foreign Investors

Downtown São Paulo, Sé Square and Cathedral The EM20 Index, developed by PricewaterhouseCoopers, of the United Kingdom shows that Brazil has improved its position in attractiveness to foreign investment among emerging countries. The ranking takes into consideration the risk of each market and measures the relative value generated for each dollar invested.

Brazil was more attractive both for foreigners interested in investing in the service sector and for those planning to put money into industry. In 2004, Brazil was in the 20th position among the most attractive for the manufacture of products. This year the country rose to the 12th position.

According to consultancy company PricewaterhouseCoopers, the low cost is a fundamental factor for industrial investors. The country's strategic location is also taken into account, as it is close to export markets and the local tax policy. The analysis considers that half of the produce is turned to export.

The service sector in the country rose from the 15th position in attractiveness to foreigners in 2004 to the eighth position this year. In this case, investors are taking into consideration the Gross Domestic Product, as 90% of services are turned to the domestic market.

On analyzing the market risk, the PricewaterhouseCoopers analysis takes into consideration the risk premium on Brazilian bonds, and on evaluating the return, economic fundaments like the per capita Gross Domestic Product and growth rate projections.

What is more important, according to PricewaterhouseCoopers, is not the market size, but the possibility of obtaining results that compensate risk.

PricewaterhouseCoopers provides auditing, tax and share advisory as well as focusing on specific economic sectors.

Anba

Tags:

Ads

You May Also Like

Brazil’s Black Monday Brings Market Down 5.43% and Dollar Up 7.53%

It was another black Monday in the Brazilian stock market, this October 6. São ...

Mercosur Is Crumbling, But Brazil Couldn’t Care Less

Mercosur is on flames and Brazil seems absent, according to one of President Lula ...

US farm

Brazil, US and Co. Intransigence Delays Doha Accord to 2008 or Later

According to a UN expert, the Doha Rounds, the global trade agreement that is ...

After 8 Inmates Are Killed, Some Decapitated, UN Asks for Brazil Reforms

While assessing the recent outbreaks of violence that took place in several prison facilities ...

Reasons of October

Lula came to power because the Brazilian Right lost its capacity to deceive the ...

Brazilians Got 1.1 Million New Jobs Last Year, 350,000 Less than in 2008

Brazil’s Minister of Labor, Carlos Lupi, presented some preliminary numbers on employment in 2009 ...

Government Gives Brazilian Companies a Break and Cuts Interest Rates

Measures announced June 29 by the government of Brazil to stimulate the economy will ...

In Brazil, Only 9% of Congress Members Are Women

Yesterday was World Population Day. The theme of the celebration this year was gender ...

Brazil’s Vice-President: Interests Are Halting Country

The president of the Brazilian Supermarket Association (Abras), João Carlos Oliveira, seemed very optimistic ...

How to Become a Carioca

Postcards from Rio People are not pedestrians here, they are targets. Traffic signals are ...