Discover Why Brazil is Getting Back at Attracting More Foreign Investors

According to Damalion, independent consulting firm based in luxembourg, following Brazil's promising investment performance in 2021, financial experts projected further improvements in the country's foreign investment landscape in 2022. After the country's difficulties amidst the COVID-19 pandemic, various sectors are ramping up their trade promotion efforts to attract foreign institutional and private investors.

Brazil successfully attracted USD 46.4 billion worth of foreign direct investments in 2021, an unprecedented 23% increase from the previous year. While signs of a slowdown were reported during the last quarter of 2021, as evidenced by the negative foreign investment balance at negative USD 3.9 billion, Brazil's Central Bank believes this is nothing but a minor slump. Brazil's foreign direct investments (FDI) are expected to increase to USD 55 billion in 2022.

Cheaper Labor Costs

Compared to other countries in Latin America, Brazil remains one of the most cost-competitive labor markets. The high GDP in Brazil is slowly decreasing as the years pass. The loss in income has made the country more competitive in the eyes of foreign investors, as labor costs are expected to decline in 2022. This gives Brazil an edge against China, which has seen a steady increase in labor costs through the years.

Foreign Investment-Friendly Policies

The Brazilian Trade and Investment Promotion Agency (APEX) plays an integral role in attracting foreign direct investment (FDI) opportunities by developing strategic initiatives, supporting foreign investors keen to allocate financial resources to Brazil.

In 2022 alone, the Brazilian Trade and Investment Promotion Agency (APEX) launched the country's auctions and concessions portfolios that are predicted to generate an estimated USD 74.4 billion.

The Ministry of Finance announced income tax exemption for foreign investors investing in local corporate bonds early this year. This initiative enhances investment protection and facilitation as well as boost foreign direct investments, which in turn is expected to strengthen the local currency and help ease the burden of double-digit inflation from recent years.

Business sectors projected to help boost foreign direct investments in Brazil this 2022 include real estate, infrastructure, natural stones, and technology start-up companies.

As a business consulting firm specializing in foreign investment markets, Damalion assists foreign investors in investing in Brazil. Through expert recommendations of business opportunities and support in the company formation process, the company aims to provide positive results for investors while contributing to Brazil's forward march to becoming one of the strongest economies in the world.

DAMALION
8-10 rue Mathias Hardt
L - 1717 Luxembourg
contact@damalion.com

Damalion is an international independent consulting firm that helps entrepreneurs, family businesses, corporates improve their business growth, asset protection and wealth preservation.

This release was published on openPR.