Brazil rises in the ranking of the most attractive destinations for foreign investment, according to Kearney consultancy

247 – Brazil reached 19th position in the top 25 and returned to the ranking of the 25 most attractive countries for Foreign Direct Investment (FDI) developed by the consultancy Kearney. It is the best result since 2017. The interviews were carried out with executives from companies in 30 countries with annual revenue exceeding US$500 million. The research listed markets with the greatest potential to attract direct investment in the next three years, according to information published this Tuesday (23) in the newspaper Valor Econômico.

Partner at Kearney in Brazil, Mark Essle stated that Brazil is “again reappearing in the context of this fragmentation of world trade, of the more careful look of large institutional investors on where they want to allocate their resources”.

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“Like the rest of the Americas, Brazil benefits from the fact that it is close to the United States, a country whose economy is doing very well. At this time when ‘nearshoring’ [tendência das multinacionais de se deslocar para perto de suas matrizes] becomes stronger, FDI tends to closely follow the dynamics of the geopolitical dispute. At the same time, Brazil also has a close relationship with China and Europe, it manages to move between the three blocs without committing to any of them and it is important that it continues like this”.

In 2024, regulatory efficiency and ease of capital mobility increased and were among the three interests most cited by participants, with 15% and 14%, respectively. They were ahead of requirements such as regulatory transparency (13%) and interest rates (11%). Technological and innovation capacity continued to be at the top of investors’ interests, with 17% of citations. The latter is not the Brazilian case.

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“When we look with a magnifying glass, investor interest in Brazil is more focused on mining, agribusiness, this entire basic industry attracts a lot of investors. The question is: in order not to run the risk of having a new chicken flight, we need to use this chance to make investments in infrastructure viable and keep up with this greater demand for exports”, said Essle.

According to the director, “Brazil is, among the large countries, the one with the cleanest energy matrix.” “And the European Union is already introducing a tax on the carbon footprint of products sold there. This will make products with a low carbon footprint comparatively cheaper than those produced in countries with an energy matrix dependent on coal, for example. talks about Brazil exporting hydrogen, but the smartest thing is to use this change to add value to products that already leave here, like transforming iron ore into ‘green’ steel, for example.”

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Among Brazil’s neighboring countries, Argentina returned to the ranking for the first time since 2013, in 24th position. “The Javier Milei government has promised reforms to stabilize the country’s finances, which attracts investors. And the opportunities there are similar to those in Brazil: Argentina is very rich in natural resources important for the energy transition, such as lithium. In 30 years we want to have net zero carbon emissions, we will need to mine more than in the rest of human history.”