By Richard Mann, Contributing Reporter
BRAZIL, BRASILIA – Brazil is no longer a reliable country for foreign investment. At least according to the index published by the consulting firm A. T. Kearney, that lists the 25 most reliable countries, and in which Brazil is not featured for the first time since the index was published, in 1998.
Without Brazil, no South American countries are featured in the index. “The absence of any South American countries in the top 25 is notable, however, given that Brazil featured in all prior editions of the index.”
In 2018, the country was already on the 25th and last position. The index is compiled from research done with 500 executives from leading companies worldwide.
It is calculated based on questions regarding the probability of the surveyed companies making a direct investment in specific markets over the three following years.
While confidence in Brazil falls, the United States have secured the first position for the seventh year in a row, “likely reflecting its large domestic market, continued economic expansion, competitive tax rates, and technological and innovation capabilities”, says the report, which highlights, however, that the recent volatility concerning policy may be reducing attractiveness.
Germany is in second place, followed by Canada and the United Kingdom. China, on the other hand, has fallen to the 7th position, the worst it has had since the index was created.
Developed countries occupy 22 out of 25 places in the ranking, 14 of them in Europe. China, India, and Mexico are the only emerging economies in the index. The consulting firm points out, however, that data from the United Nations Conference on Trade and Development (UNCTAD) shows that the flow of investment into emerging markets has grown in the last few years.
The consulting firm also says that investors remain optimistic regarding the global economy, with 62 percent of the surveyed saying that they are more optimistic than last year. That percentage, however, is lower than the 66 percent found in the 2018 report.