Brazil-destined FDI has been falling steadily since 2011, according to greenfield investment monitor fDi Markets. Project numbers reached a high of 539 in 2011 compared with 331 the previous year, but have since declined.

Tracked projects between 2011 and 2014 dropped by 36.9%. São Paulo was the most common state for FDI in this period, recording 790 projects, with Rio de Janeiro in second place with 219 projects.

In terms of source country, the US topped the chart, investing in 470 projects between 2011 and 2014, followed by the UK, with 166 projects. The majority of FDI projects were for the software and IT services sector, followed by business services. FDI in these two sectors did not begin to fall until 2013 and actually recorded increases in 2012 of 18.46% and 17.46%, respectively.

In regards to business function, manufacturing topped the charts, with $53.9bn invested in this area between 2011 and 2014. This was followed by information and communications technology, and internet infrastructure.

Overall, between 2011 and 2014, investment capital fell by 63.3%. Brazil’s growth potential and proximity to markets were the most common reasons given by investors for targeting the country.

Looking at 2015, Brazil-destined FDI looks set for another drop. In the first quarter of 2015, project numbers reached 56 compared with 117 for the same period in 2014. Project numbers totalled 56 in the second quarter compared with 83 for the same quarter in the previous year.