Investment Articles

Investing in Brazil has been attractive for many global investors in recent years. Following decades of previous boom/bust cycles, political instability, currency crises and inflation, the past decade has been remarkable. Brazil has experienced real economic growth at a rate that is double that of the United States, as well as moderate inflation, declining interest rate, and huge flows of foreign investment. Millions of citizens have been lifted out of poverty and the economy is now approaching full employment after experiencing only a mild recession in 2009. Investors in the U.S. may ask themselves if it is still a good time to invest in Brazil.

To help put the Brazilian investment opportunity in context, let’s examine some of the reasons for why there has been so much attention paid to Brazil for the past decade, and why there is reason to be optimistic about the future. Here are the top 10 facts about Brazil that might surprise you:

Brazil’s annual economic output is greater than all other South American countries combined
Brazil is the 4th largest creditor of the United States, currently holding more than $200b of U.S. Treasuries
Brazil’s largest trading partner is China
Brazil has 14% of all the fresh water on the surface of the earth
Brazil has 11% of all the available arable land on the earth
Brazil is the world’s leading producer of iron ore and is the world’s largest exporter of beef, chicken, coffee, sugar, orange juice, and tobacco
80% of all the electricity generated in Brazil is produced hydro-electric facilities, making Brazil the “greenest” of all major economies and providing very cheap electricity
In 2010, 50% of all the new oil discoveries around the world were made in Brazil
Brazilian became a net exporter of crude oil in 2009
Brazil is the world’s largest exporter of ethanol

This all seems like pretty amazing stuff for a country that has less than 3% of the entire global population, and demonstrates part of the case to be made for investing in Brazil. Essentially, Brazil is a country with vast energy and agricultural resources, a stable political system, an expanding middle class, and a fast growing economy that is being driven both by domestic consumption as well as foreign trade. Brazil produces goods and services that are in heavy demand by the rest of the world and the country is positioned to do well for many years to come. The Brazilian middle class will continue to expand, leading to substantially higher levels of domestic consumption and growth of consumer-oriented companies. Many multi-national companies are investing in Brazil by deploying growth capital into new facilities in the country.

In addition to extraordinary mining, materials, and agricultural resources, Brazil also has something that is lacking in so many other resource-rich nations: scientific and technological expertise. As just one example, Brazil is home to Embraer – the world’s 3rd largest manufacturer of aircraft behind Boeing and Airbus, and one of Brazil’s largest exporters. If you’ve ever flown on a regional passenger flight in the U.S., chances are you’ve flown on an Embraer aircraft. Having the technology to design, develop, and manufacture large scale commercial and military aircraft is a capability that only a small number of countries possess and it may be fair to say that Brazil is the most technologically sophisticated of all the emerging market economies. Incidentally, Brazil will also host the 2014 World Cup and the 2016 Summer Olympics.

It should be noted, of course, that Brazil is not without its problems. Its homicide rate is 4 times that of the United States and the country has considerable problems with gangs and corruption. In order to continue its growth trajectory, Brazil must continue to invest heavily in infrastructure so that goods can be readily moved to market, whether for internal consumption, or for export. Until 10 years ago, Brazil was perhaps most well-known for its history of high inflation, political instability, and currency crises, and many investors question if the current economic miracle is sustainable, or simply another intermission between crises. This is a valid question. Historical analysis is critically important for investors to understand the potential risks and rewards in a given investment opportunity. But as Warren Buffett once said, “If past history is all there was to the game, the richest people would be librarians.”

For those looking to invest in Brazil, I think it is important to study the past and learn from it, but it is more important to evaluate the present conditions, and to invest for the future. On balance, the future for Brazil is likely to be bright, and globally-oriented investors may be well-served to evaluate the present circumstances for themselves, and to invest for the future.

Ian McAbeer is the President of Blackhaw Wealth Management, an Investment Advisor providing portfolio management and investment advisory services to individuals and families and foundations.

Turkey is the 15th most attractive destination for Foreign Direct Investment (FDI) in the world (UNCTAD World Investment Prospects Survey, 2008-2010. As a relatively young and developing country Turkey is wide open for Foreign Direct Investment. The official numbers below, which I provided from Presidential Treasury Undersecretaries of Republic of Turkey, prove that or FDI in Turkey is also developing and return of investment is almost guaranteed.

By the end of October 2005, 9.778 foreign-funded companies and branch offices have been established, 1.929 local-funded companies have been affiliated with foreign funds and in total 11.707 foreign funded companies are in transaction in our country. And finally as of the end of 2009, more than 23,000 companies with foreign capital were operating in Turkey.

And here it is available to compare FDI USD million Inflow to Turkey by years.

When the FDI law in Turkey has been established in June 17, 2003 it has been an obvious increase in the number of companies and the number of foreign-funded companies have raised in a rate of 88.4% compared to the previous year. After the date when the law became effective 5.429 foreign-funded companies have commenced operation in our country and 232 of these had more than $500.000 stock.

Foreign investment in the service sector increased by 22.3 percent to $1.462 billion (January through July 2010). The most attractive sub-service sector was brokerage houses with an increase of 152 percent in FDI to $715 million. Also there are other sectors which are attractive for potantial investors

For more information about FDI in Turkey and investment opportunities, you can check Invest in Turkey website; http://www.invest.gov.tr/en-US/investmentguide/investorsguide/Pages/FDIinTurkey.aspx

Most Middle Eastern countries in the Persian Gulf and around the Mediterranean have signed Bilateral Investment Treaties (BITs) with European countries, in particular, Austria, Belgium, France, Germany, Italy and, to a lesser extent, Spain and the United Kingdom. These treaties aim to protect foreign investments from arbitrary expropriation and provide for dispute settlement procedures if these are required. Dispute settlement can involve the two signatory states only, but also empower private companies to have recourse to investor-to-state international legal arbitration. The future of the EU’s BITs, however, is currently being redefined in Brussels, the capital of the European Union. Indeed, the new Lisbon Treaty that has organized the European Union (EU) since December 2009 now gives the authorities in Brussels exclusive rights to negotiate international deals on foreign direct investment (FDI). What does this mean for the Middle East?

First, some background. Although the EU is a single customs territory with exclusive rights to negotiate and sign international trade agreements, be it World Trade Organization (WTO) deals or bilateral free trade agreements (FTAs), the right to sign treaties regulating foreign investment with third countries has traditionally been jealously guarded by member states. These states have pursued their own policies to suit their individual economic strategies or to maintain privileged relationships with powerful partners. But times have changed. With the rise of challenging economic powers such as China or Russia and other crucial emerging markets, Europeans have felt the need to pool power to convince their partners to open their markets for investment and to ensure their assets are adequately protected. For outsiders too, it will become easier to deal with one single partner on FDI, especially in the services sector, rather than navigate 27 different entities that are supposed to be one single market but are often a patchwork of diverging regulations.

The drafters of the Lisbon Treaty meant to allow the EU not only to sign investment liberalization deals, but also so-called “post-establishment” agreements regarding protection of investments, which is what BITs do. The EU’s 27 member states have signed about 1,700 BITs, of which around 1450 are in force. Under the new treaty, it is likely that the process leading to a future BIT will operate like the 2007 US-EU Open Skies agreement. Here, the EU agreement replaced and superseded all other bilateral agreements on flight rights signed between individual member states and the United States. But before the Brussels machinery comes up with its own BIT, the first major challenge is to clarify the legal status of all the existing BITs. For both practical and political reasons, these cannot just be brushed aside in one stroke.

The EU Commission, the body that negotiates trade deals, is drafting a proposal on how to “grandfather” all these agreements, i.e. to integrate member state BITs into EU law. But this arrangement might require adjustments to certain treaties. Furthermore, the political process surrounding grandfathering will not be as straightforward as some might have hoped.

The Commission is likely to put conditions on treating certain BITs as compatible with EU law. In previous legal battles with Austria, Sweden and Finland, the Commission has used the European Court of Justice’s opinions to make these countries change BIT clauses or abandon BITs that allowed unlimited transfer of profits across borders. Under EU law, special circumstances, such as a balance-of-payments crisis or financial sanctions against a third country, should permit restrictions on profit transfers. The Commission might dig out more clauses to make a point about compatibility with EU law. Some member states will be reluctant to let their external FDI policies be determined by Brussels and are likely to pick a fight. Some experts predict that the parties to the process might resort to the European Court of Justice to clarify Brussels versus the member states’ powers on the matter.

Now enter the EU Parliament. Since December last year, it has equal powers to the Council of member states to decide on trade and investment policy. Certain Members of the European Parliament (MEPs), mostly on the left side of the political spectrum, have already signaled that they will want to put conditions on grandfathering BITs. Not all member state BITs cater for investor-to-state arbitration proceedings, but a growing number do. For ideological reasons, some MEPs oppose the principle of investor-to-state dispute settlement, so the matter might become politicized. Certain MEPs will insist on conditioning grandfathering on the introduction of environmental, ethical or labor clauses.

Given the still very patchy power configuration among the different institutions under the new treaty, it is unclear how this “Battle of the BITs” will ultimately play out. So: What are the implications of this centralization of European investor protection policies for Middle Eastern policy-makers? From a Middle Eastern perspective, this will have both up and downsides. On the one hand, the EU might in the future be much more demanding on its partners as to the degree of protection of its investments. If investor protection, and even procedures for investor-to-state dispute settlement, is included in future bilateral free trade agreements, the EU will be able to condition better access to its markets on strong commitments by its partners to sign up to these clauses. On the other hand, as many Middle Eastern countries have become major international investors, it will be much easier for them to have their own investments guaranteed. There are very few Middle Eastern BITs with the new EU member states, for example, where there is substantial need for foreign investment, but where the business environment tends to be less favorable than in an average Western European economy, and therefore investments not always as secure. It might well be in the interest of Middle Eastern investors to have only one interlocutor-the authorities in Brussels-to deal with FDI matters in the 27 member states.

But all this will take time. We are still quite far from a model “EU BIT,” as some have been predicting, or an equivalent of the NAFTA Chapter 11 and its bilateral investor-state dispute settlement mechanism, integrated into the next EU bilateral trade deal. The EU will move slowly. 2010, at least, will be a year of legal clarification. Furthermore, it must also be clear that these new powers of the EU do not extend to portfolio investment. Financial services in the EU are not fully integrated and regulation is not centralized-even if the EU has attempted to provide a framework. Therefore, Sovereign Wealth Funds and private funds from the Middle East will need to continue to deal with individual member states to see to it that their interests are protected.

First published: Friday 23 April 2010

http://www.majalla.com/en/economics/article46587.ece

The Trustee Act 2000 makes it clear that trustees are required to obtain and consider investment advice from a person they consider qualified to give it. This makes a great deal of sense but how does it work in practice?

The first job of the Investment Adviser is to help the trustees to prepare an Investment Policy Statement. This statement is intended to clearly identify what the proposed investment is required to achieve, over what time period, and how performance will be assessed in the future. A typical Investment Policy Statement will include the following:-

The overall level of return expected and minimum yield required
The income or capital requirements
The nature of timing of any liabilities
The liquidity requirement, including dates of planned expenditure
The marketability of the investments – important if income needs to be raised quickly
The time horizon of the trust – less than five years or long term
The time horizon over which performance will be assessed
The residence and tax status of the trust and the beneficiaries
Any socially responsible investment constraints
Other tax and legal constraints

Once agreed with the trustees, the statement will help the adviser in devising a strategy to generate a sufficient return to fulfill these objectives over the short, medium and long term.

Investment Risk

In an ideal world, trustees would expect a competitive and rising income with no risk to capital. In the real world however, interest from deposit accounts will not even match inflation. This means that the assets of very many trusts are guaranteed to go down in real terms. To protect trust assets against inflation and/or to generate a reasonable income in the current climate, some investment risk has to be accepted. Whilst cash that will be needed in the next year or two will have to be kept on deposit, money not earmarked for short term expenditure should be invested in a professionally designed portfolio of assets such as equities, gilts, corporate bonds and commercial property. The investment adviser will be able to suggest a portfolio to fulfill the objectives within the Investment Policy Statement and to explain the risks involved. It is for the trustees to decide if that level of risk is acceptable or whether the stated growth or income requirements were over optimistic. A degree of compromise is often required before an investment portfolio is finally agreed upon.

Investment Management

The size of the required investment largely dictates how the portfolio will be managed. This is because a major factor in reducing investment risk is diversification. As an example, investing in a portfolio of 40 or 50 shares carries much less risk than investing in just one or two. This means that smaller amounts might be directed towards collective investment such as unit trusts or investment trusts which can provide the required spread. There is often a combination of the two approaches with UK investments being directly held and foreign investments being in collectives. This is because the UK portion of a portfolio is invariable larger than the amount invested in (say) the USA or Europe.

Designing a suitable portfolio is only the start of the process. As different assets grow at different rates, the risk profile will move away from where it was originally set. For example, a typical portfolio might be invested 40% in equities with the balance in cash and fixed interest securities. If stock markets have a good year, the equity content might grow to 50% or more and the risk profile will have increased. A process needs to be established to regularly monitor and adjust the risk profile of the portfolio. The day to day management of larger portfolios, including rebalancing to maintain the original risk profile, is often passed to a discretionary fund management company. The role of the nominated Investment Adviser then becomes one of helping the trustees to evaluate the performance of the Investment Manager against the benchmarks agreed in the Investment Policy Statement as required by the Trustee Act 2000.

Independent Advice

To obtain impartial advice on the entire investment market, trustees should deal with an Independent Financial Adviser. There will than be no concerns about their recommendations being tainted because of access to a limited range of products or funds. Similarly, an Independent Financial Adviser will have no compunction about replacing an under-performing fund manager in the future – whereas an adviser working for the same company might not be in a position to do so.

Mike Wilson is a director of Scottsdale Consulting Ltd, having entered Financial Services in 1985 he specialises in pensions and investments, as well as expat services. He has a wealth of experience advising clients and in training other financial advisers.

Gone are the days when people were content to invest in safe bank deposits and treasury bonds. With increased interest in investing in stock exchange shares, ETFs (Exchange Traded Funds), mutual funds and other types of financial investment instruments, an average investor is faced with a host of choices. Investment decisions can be confusing for an unseasoned investor. An investment advisor can help an individual to make informed investment decisions. By properly following the recommendations of the advisor an individual can secure optimal returns and capital appreciation over his or her savings.

Investment advisers are firms or individuals who give investment advice on personal or institutional finances. The advice can be in the form of choosing the best stocks for an investor to go long or short on, implementing strategies on when to go long, short or hold, suggesting on how to diversify the existing portfolio etc. These advisers are also well equipped to give recommendations on foreign investments.

There are two types of investment advisers – registered and unregistered. US investment advisers require to be registered with the Securities and Exchange Commission (SEC). They can even be registered with regulatory authorities in local states. Investment advisers offer fee based services. This specific industry is strictly regulated and covered by provisions in US law.

Role of Investment Advisors

Investments in securities – Advisers must give an investment scheme to clients before trading in securities. A good advisor informs the client on the best available choices to assemble in a stock portfolio. suggestion to hold on to shares or to exit the stock can also be given depending on the prevailing market conditions. Consultancy services like this are given to retail investors, individuals and even entities such as the mutual fund houses.

Putting the best interest of the client first – US Investment advisers have a fiduciary accountability. This means that they are required to put the interests of their clients above their own interests and make absolute that the client gets the supreme investment suggestion. It also means that if instances of conflict of interest in the case of advisers are shown, then the client can take legal action against the individual or the firm.

Safeguard clients’ assets and maintain records – An investment advisor is also accountable for maintaining records of all the client transactions. In such cases, the client needs to acquire a consolidated statement every three months. This statement shows the status of the assets as well as what transactions have taken place regarding the securities of the client.

Diversifying the portfolio – Diversified investment advisers can confirm that an investor’s assets are expand across different sectors and in several types of investments such as stocks, bonds and choice investments. An investment advisor can also serve to vary and look beyond local investments and look at investing in foreign stock markets or mutual funds. This means that if there is a collapse in one sector or one class of investment, only a portion of the portfolio is affected.

For more information about master limited partnership ETF, visit our website.

Investing in foreign countries is gaining in popularity. In its true sense, offshore investing is investing outside the home country of the investor. This is mainly done by investors for gaining higher returns on investment or for tax planning.

There are many offshore companies that offer equity assets and bonds which are financially sound. The investment policies offered by these companies are generally time tested and they are legal. Many investors have a strategy of investing twenty five to thirty percent of their income in other countries. This is basically done to avoid taxes and to get high returns on their investment.

The main advantage of this is tax reduction. Many small countries which have very limited resources allow individuals or corporations to set up a company. Normally, these companies will not have any operational facilities in the country where it is hosted. This way the individual or the corporation has to pay little tax or no tax for the investment made in a foreign land. As this is more profitable from an investor’s point of view, most of them prefer to invest in foreign countries.

The next advantage in offshore investing is that it is one of the best ways to diversify an investment portfolio. There are good chances to get bigger returns from these types of investment as investors get a chance to access potentially profitable markets. The most popular methods followed by investors in making investments in foreign countries are through incorporating a company.

Investment in foreign countries offers investors complete security for their assets. However, it is necessary to choose a profitable country to make an investment in. This will help in protecting the investment as well as the assets. By investing in a legal entity, the investor surely benefits from the intrinsic protection of both international and domestic laws. Apart from setting up a company in a foreign country for tax benefits and higher returns on investment, one more option available is establishing a foundation or a fund. Offshore investing can be done through establishing a trust in the investors name or in any other name.

The investment on the offshore banking activity will provide services to all international customers of the institution with low tax rates. The law does permit financial holding companies to open up offices in foreign lands. They are eligible to do business that manages an international investment portfolio and provides job opportunities to the local population and creates economic growth.

Low tax rates prevailing in small countries is an important factor that helps financial institutions to make profits on foreign investment. However, effort has to be taken in identifying the right place for foreign investment where the returns on investment are high and at the same time the investments are secured.

Jeremy Winters also writes about insurance quotes. For more information, be sure to visit: http://www.foxrater.com

Investing in emerging markets can be a great way to get a decent return on your investment. Consider if you will the very slow growth in the United States right now compared to other nations such as China, Vietnam, Chile, Brazil, India, and others. Of course, if you want to invest in an emerging market you need to make sure that the government is stable, and it won’t be taken over by socialist rulers who will nationalize the assets of foreign companies.

This recently happened in Bolivia, Venezuela, and we expect it to happen in Ecuador as well. Yes, there will be fallout for those nations because foreign investment will completely dry up, as no one wishes to take the risk. Oh, some people will take the risk if they can get in cahoots with those in charge and the current leadership. However, because socialism usually leads to the decline of a nation, those rulers perhaps will not be in power is long as they would like, and if you are invested with them or that ruling family, you could easily be out of business with their overthrown.

Not long ago, I was talking to an acquaintance of mine and he asked me what I thought the next great emerging market would be to invest in. And then I asked him; okay what are my choices, you see I do read the Economist, and I do like the articles on such topics. No, I am not completely convinced with what I read, but it does give me a good basis on where to search, and where to start an in depth amount of research, after all there are over 300 countries to study, and no one can be an expert on all of them, besides things change every week.

My acquaintance mentioned Ethiopia. Yes, there are good reasons to invest their, they have an excellent labor source, in the big city. And many people from the rural areas are moving to the city to get jobs, or to get away from the floods or droughts depending on the year. There has been civil unrest in the country from time to time, but with such low wages, their manufacturing output, on a comparative basis for cost is rather staggering, and it might be a very good place to invest, if you have the stomach for it.

Wow, yes, Ethiopia, and how about Egypt, I see lots of investment dollars moving in. There have been some interesting articles in the Economist the last couple of years actually. There is a tremendous workforce there, lots of people willing to work $1-3 per day. There are many other nations desiring partners, investment, and ready to adjust to the future in order to get there.

Indeed, to reiterate, I am disheartened by some of the socialism trends in South America, the types of trends which lead to nationalization of foreign business assets especially in nations like Bolivia, Ecuador, Venezuela, etc. and many of the countries that had made so much progress, and really increased the standards of living for the people. I was listening to a speech by Mark Mobius on these topics the other day – very interesting. I hope you will please consider all this.

Lance Winslow is a retired Founder of a Nationwide Franchise Chain, and now runs the Online Think Tank. Lance Winslow believes writing 22,000 articles was a lot of work – because all the letters on his keyboard are now worn off.

A Saudi Arabian company is set to invest up to £315 million in Brazil. Representatives from Agro Invest, an agricultural investment company, have visited Brazil to seek out partnerships for producing and exporting grain and poultry.

“Brazil has lots of potential,” said Mohamed Abdullah Al-Rasheed, president of Saudi Greenhouses, one of the companies in the Agro Invest group. “It has good climate and good soil for grain and poultry farming. It is a good country to invest in.”

It comes as Chinese investments in Brazil are set to reach £15.5 billion. This would make the country the biggest foreign investor in Brazil, according to figures from the Brazil-China Chamber of Commerce and Industry. The total could reach £25 billion per year by 2014.

From January to August this year, China invested a massive £7 billion in Brazil. Among the most recent investments was state-owned company Sinochem which paid nearly £2 billion for the Peregrino oil field which previously belonged to Norway’s Statoil.

The new long-term partnership between Saudi Arabia and Brazil is set to begin next year. Agro Invest’s main areas of interest are poultry, wheat, maize and soy.

The soil, climate and abundance of water coupled with advanced Brazilian technology and entrepreneurship, have led the country to become a leading producer and exporter of food.

In recent years, Brazil has become one of the world’s leading recipients of foreign investment. There is a longstanding presence of international companies across all areas of the economy including telecommunications, chemicals, pharmaceuticals, car manufacturing and agriculture.

The attractiveness of foreign investment in Brazil is due to the size of its domestic market, political stability and openness, and economic reforms. The flow of foreign investment into the country has played a major role in enlarging industrial capacity and boosting competitiveness.

One of the main factors in its favour is that Brazilian law offers the same protection and guarantees to foreign investments that it gives to investments made by Brazilian nationals. Special incentives are offered for investments in mining, fishing, tourism, shipbuilding, and reforestation and for projects undertaken in the northeast and Amazon regions.

http://www.globalforestryinvestments.com/

Andrew Skeene

Foreign direct investments have played an important role in Brazil’s economic development. FDI inflows into the country are mainly attracted by its big domestic market and the liberalized economy thanks to fair government policies. Most investments in Brazil have been made with a bias on the technological aspects of the economy. However, the service sector has attracted foreign investments too. The Brazilian FDI regime has remained liberal and has been plausible in its sum financial output for its economy. Brazil investment opportunities have a minor number of horizontal reservations or limitations.

Brazil investment opportunities flourish in the various sectors of the economy; production as well as the service industries. With an economy estimated at $1.3 trillion, foreign direct investments are crucial in financing the country’s payment balance due to investors taking out money from the capital markets and the slow recovery from the global recession.

Brazil’s stock of direct foreign investments stands at $318.5 billion, according to 2009 figures. This shows a marked increase from the total FDI revenue from the previous year. Brazil’s GDP stands at BRR 1,359.71 billion. In the year 2008, as the close of that year, the country’s GDP stood at BRR 1,362.23 billion; a marked fall given the global recession. This represents a fall of 0.18%. Brazil’s GDP for the year is expected to stand at BRR 1,434.44 billion, about five percentage point increase from the year 2009.

As at January 2010, the country’s FDI totaled US$2.41 billion. This was reflective of an annual growth rate of 63.9 per cent, the highest since 2000. Out of all these foreign investments at the beginning of this year, a majority of them were in the service sector. FDI figures for the first month 2010 were also higher than those posted in 2006 in the same month. The retail sector took US$364 million, auto manufacture US$258 million, transport US$248million and the metallurgy sector US$232 million.

In the year 2006, Brazil’s FDI peaked at US18.78 billion, the highest since 2001 with US$22.46 billion. This was still higher than had been recorded in the year 2005 with US$15.19 billion. Even so, the country’s highest monthly FDI statistic was in 2007, June with the country getting $10.3 billion. Brazil is the world’s tenth largest economy and Latin America’s largest. Its economy is expected to top the five biggest in the world in the coming decades. Its GDP per capital stands at $10,200.

Invest in Brazil is a rich information resource for the international investors. If you’re looking to promote your Brazilian investment opportunity to international investors, there is a range of advertising opportunities available on http://www.investinbrazil.biz.

Foreign direct investments have played an important role in Brazil’s economic development. FDI inflows into the country are mainly attracted by its big domestic market and the liberalized economy thanks to fair government policies. Most investments in Brazil have been made with a bias on the technological aspects of the economy. However, the service sector has attracted foreign investments too. The Brazilian FDI regime has remained liberal and has been plausible in its sum financial output for its economy. Brazil investment opportunities have a minor number of horizontal reservations or limitations.

Brazil investment opportunities flourish in the various sectors of the economy; production as well as the service industries. With an economy estimated at $1.3 trillion, foreign direct investments are crucial in financing the country’s payment balance due to investors taking out money from the capital markets and the slow recovery from the global recession.

Brazil’s stock of direct foreign investments stands at $318.5 billion, according to 2009 figures. This shows a marked increase from the total FDI revenue from the previous year. Brazil’s GDP stands at BRR 1,359.71 billion. In the year 2008, as the close of that year, the country’s GDP stood at BRR 1,362.23 billion; a marked fall given the global recession. This represents a fall of 0.18%. Brazil’s GDP for the year is expected to stand at BRR 1,434.44 billion, about five percentage point increase from the year 2009.

As at January 2010, the country’s FDI totaled US$2.41 billion. This was reflective of an annual growth rate of 63.9 per cent, the highest since 2000. Out of all these foreign investments at the beginning of this year, a majority of them were in the service sector. FDI figures for the first month 2010 were also higher than those posted in 2006 in the same month. The retail sector took US$364 million, auto manufacture US$258 million, transport US$248million and the metallurgy sector US$232 million.

In the year 2006, Brazil’s FDI peaked at US18.78 billion, the highest since 2001 with US$22.46 billion. This was still higher than had been recorded in the year 2005 with US$15.19 billion. Even so, the country’s highest monthly FDI statistic was in 2007, June with the country getting $10.3 billion. Brazil is the world’s tenth largest economy and Latin America’s largest. Its economy is expected to top the five biggest in the world in the coming decades. Its GDP per capital stands at $10,200.

Invest in Brazil is a rich information resource for the international investors. If you’re looking to promote your Brazilian investment opportunity to international investors, there is a range of advertising opportunities available on http://www.investinbrazil.biz.