Columbia International Affairs Online: Working Papers

CIAO DATE: 09/2009

The growth of Brazil's direct investment abroad and the challenges it faces

Luís Afonso Lima, Octavio de Barros

August 2009

Columbia Center on Sustainable Investment

Abstract

Direct investment abroad may have contracted in most home countries in 2008 but Brazil had its best year ever, with outflows of USD 21 billion. In 2009, however, the global economic crisis has made a huge difference, with Brazil's outward investment declining by 87% in the first five months of 2009. The authors note that while Brazilian companies, like companies elsewhere, have sought markets and natural resources abroad, they have also in part been pushed to escape the investment climate at home. The authors end by suggesting some rethinking of key government policies.