Brazilian financial centres attracted a total of $3.3bn in foreign direct investment (FDI) over the 12 months to August 2014, according to estimates by investment monitor fDi intelligence. This is almost four times the amount directed to Mexico, the second highest scoring country in the list, over the same period.
Brazil’s inward FDI was mainly directed towards its leading financial centre, São Paulo, which received $2.17bn of capital investment over eight projects. Capital city Brasilia saw $361m investment by US-based insurance services company McLarens, which has based a new aviation claims management office in the city. Rio de Janeiro attracted $51m over three FDI projects. A number of other FDI projects were spread across the country. Total investment in Brazilian finance centres, however, was 25% lower than the previous 12 months.
One country to experience an increase in FDI into the financial sector was Mexico, which attracted almost three times the amount it had in the previous 12 months – a reflection of the wide-reaching reforms the country enacted in 2013.
Colombia, the third largest destination in Latin America for financial sector FDI, suffered a reduction of inward financial sector FDI, which dropped to about $278m in the 12 months to August 2014, from almost $909m in the previous 12 months. Capital city Bogota took the lion's share of this, with a total of $92m.
When it comes to outward investment, Venezuela generated the largest volumes, with $474m and five projects – all of which were part of Caracas-based Banesco Banco Universal’s international expansion. These five projects were in Brazil, Mexico, Argentina, Panama and the US. This represents a year-on-year growth of more than 40% on the country’s FDI abroad.
