fDi Report 2013 - BRIC countries


BRIC countries

The Brazil, Russia, India and China (BRIC) national have all become major players in global FDI. From 2003 to 2012, the BRIC countries attracted 22.29% of global FDI projects. China alone attracted over one-tenth of global FDI projects and has topped the regional rankings every year since 2003. BRIC countries have attracted 26,027 projects since 2003, with estimated capital investment of $2.23 trillion, creating an estimated 8 million new jobs directly in the operations being established. The highest volume of FDI into the BRIC countries was in 2008, with a total of 3,205 projects recorded.

In 2012, three of the BRIC countries - China, India and Brazil - all finished within the top five destination countries for FDI globally. Collectively, they attracted 17.64% of global FDI projects. Brazil saw the largest increase in market share of the BRIC countries in 2012, attracting 18.42% of FDI projects into the BRICs. Russia attracted 11.3% of FDI projects into the BRICs in 2012 and ranked second in capital investment in Europe in 2012. India attracted 30.02% of FDI projects into the BRICs in 2012. The country also performed well from a regional and global perspective in 2012, ranking second in Asia-Pacific and fourth globally by project numbers. China accounted for 40.26% of FDI projects into BRICs in 2012 and captured 8.01% of global FDI projects. Within Asia-Pacific, China is the top country for FDI by project numbers, with a regional market share of 25.24% of projects.

The economic slowdown in BRIC economies and worldwide is likely to lead to a continued decline in FDI to the BRIC countries in 2013. However, from 2014 onwards we expect FDI into the BRICs to rebound due to stronger economic growth and local factors. The 2014 FIFA World Cup and 2016 Olympics in Brazil and the 2018 FIFA World Cup in Russia should stimulate FDI. Major FDI reforms in India, including passing a new land acquisition law and permitting more FDI in retailing, airlines, and broadcasting is likely to increase FDI into India in the medium to longer term and once the path of Chinese GDP growth becomes clearer investors are likely to expand FDI again into China.

To read the full Bric countries section download the report.