Brazil, absent from the ranking for a year, returned to the list of the 25 most attractive countries for foreign direct investment, according to the IDI from the consultancy Kearney.
The country now occupies 19th position, rising two places compared to the last measurement, in 2022.
Factors that contributed to the improvement in Brazil's position
According to the study, several factors contributed to the improvement in Brazil's position in the ranking:
- Improved perception of the country's political and economic environment: Brazilian government reforms and fiscal commitment increased investor confidence;
- Currency stability: The fall in inflation and the stabilization of the exchange rate contributed to a macroeconomic environment more favorable to investment;
- Domestic market potential: The large Brazilian domestic market, with more than 210 million inhabitants, continues to be an attraction for foreign investors;
- Abundant natural resources: Brazil, rich in natural resources such as minerals, oil and agribusiness, is attractive for investments.
Opportunities for Brazil
Despite improving in the ranking, Brazil has a long way to go to become highly attractive for global investments.
Some of the key opportunities for the country include:
- Continue with structural reforms: Continuing structural reforms, such as pension reform and tax reform, are essential to improving the business environment in Brazil and attracting more foreign investment. Furthermore, these changes are essential to boost sustainable economic growth;
- Invest in infrastructure: Brazil needs to invest in infrastructure, such as ports, highways and airports, to improve logistics and reduce production costs;
- Qualify the workforce: Investing in education and workforce training is essential to increase the country's productivity and competitiveness. Furthermore, it is essential to ensure universal access to quality education;
- Fighting corruption: Fighting corruption is essential to improving Brazil's image abroad and increasing the confidence of foreign investors.
Impact of Brazil's return to the ranking on the economy
Brazil's return to the ranking of the 25 most attractive countries for investment is good news for the country's economy. The increase in foreign investment can generate new jobs, increase income and develop infrastructure.
However, it is important to emphasize that the positive impact of foreign investment will depend on the Brazilian government's ability to implement the necessary reforms to improve the business environment in the country.
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