Brazil’s economy is not expected to improve in the near future, with gross domestic product set to contract this year. Yet the country may find some solace in the seemingly stronger appeal of its financial services sector. São Paulo, Brazil’s main financial centre, attracted more than $1.4bn of foreign direct investment (FDI) in 2015, according to estimates by data provider fDi Markets. This dwarfs the $874m of the previous year and is the largest amount directed to any financial centre in Latin America and the Caribbean in 2015.
Rio de Janeiro is second placed for regional inward FDI, with just under $290m, a figure similar to that achieved by last year’s second best, Brasilia.
The projects that went into the Brazilian financial centres in both years were of a varied nature, from private equity investments to international trade and corporate finance businesses, to office expansions.
Mexico City remains in third place with about $194m, which is slightly more than the previous year’s capital expenditure, while Bogotá climbed up to fourth from fifth, despite lower inward FDI. Santiago, which came fourth last year, does not feature in the latest table.
Buenos Aires leads the outward FDI ranking, with $445m. Argentina has not been associated often with foreign investments, but a local peer-to-peer lender, Afluenta, is making strides abroad and investing across the region, in Brazil, Mexico, Peru, Colombia, Chile and Uruguay. Bermuda’s capital, Hamilton, retains its second place, with $224m. However, Caracas has lost its place in the outward FDI table that it topped in 2014.
