Vision Campo Belo - Property Frontiers

Why Invest in Brazil?
Foreign Direct Investment
Currently the frequency of more FDI
announcements into Brazil is extremely high, nearly
everyday there is further news of some multinational
company or country wanting to invest into Brazil.
An example of this is Anglo American, the mining
giant announcing that it is to pay $5.5 billion dollars
to MMX (a Brazilian company) to take control of two
iron ore mines.
Out of the 4 BRIC countries Brazil has lagged behind
in terms of the amount of foreign investment it has
received, but this has started to change and over
the past year there has been a surge in activity.
Figures published at the start of 2008 showed that
Brazil attracted twice as much investment as India
in 2007 and that this growth rate was faster than
that of Russia and China. Last year $37.6 billion was
invested - more than double the amount received
in 2006. Many economists had forecast that the
country would be attracting around $25 billion so
these figures are very encouraging.
The reasons for such investment lie in the abundance
of natural resources the country has to offer. Oil,
Soya beans and iron ore, are commodities in which
world demand is increasing and fast. In the first 11
months of 2007 $3 billion was invested in iron ore
mining projects alone, this is 6 times the figure of
the whole of 2006.
Page 14 Vision, Campo Belo, Sao Paulo, Brazil
Billions of dollars are been invested into the
country’s manufacturing with Steel being the main
player. Mittal Steel is planning to invest a further
$5 billion over the next 5 years to increase annual
production by 40%.
Another sector that will see huge investment is
Ethanol, where Brazil leads the world in terms of
technology, capacity and production.
Sources 11, 12
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