Emerging ETFs. growth of investment in Brazil is now higher than in China

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Brazil has registered a foreign investment growth rate higher than China's for the first time. The country is among the top ten investment destinations in the world, surpassing traditional economies like Japan and Italy and almost equaling that of Germany. The data was released by the UN Conference on Trade and Development (UNCTAD), and confirm a profound transformation in the global economy.  

For the first time in history, developing countries have received more investments that the rich countries, which still suffer from an uncertain recovery, high unemployment, and turmoil in financial markets, as w ell as lack of growth compared with emerging economies.
The Brazilian economy expansion has followed the same path of other emerging markets. Foreigners increased purchases of Brazilian companies between 2009 and 2010, with a larger volume of resources than they spent in China and more than twice the global acquisitions in France, data affected by the Telefonica transaction in the domestic market.

Overall, the overseas investments were stagnant in 2010, amounting to only 0.7% more than in 2009. Last year, global investments totaled $ 1.12 trillion, compared with $ 1.11 trillion in 2009. But this was mainly due to stagnation in rich countries, which registered a 7% drop in investment flows in 2010. Europe recorded a 22% drop in investment received, against a contraction of 83% in Japan.

Investment in countries such as Ireland fell by 66%, against 20% in Denmark, 55% in Luxembourg and a 38% fall in Greece. In the United States, the figure was 43% higher in 2010 compared to 2009. But that meant only a modest recovery over two years of deep drops. The U.S. economy, despite receiving investments, ended 2010 with a volume equivalent to only half of which received three years ago.

Emerging markets

The great transformation, however, occurred in developing countries. Together, these economies in 2010 received more than 53% of what was invested in the world and had a 10% increase.  

"This is the first time in history that this occurs, " said James Zhan, director of the Investment Department of UNCTAD.

In 2010, rich countries received U.S. $527 billion in foreign investment. Emerging and transition economies received $596 billion. The Brazil totaled U.S. $30.2 billion in 2010, 16.3% above 2009 levels and an expansion well above the 9.7% growth in emerging countries.