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Despite facing unfavorable external factors such as global instability, Brazil continues to exhibit strong appeal to foreign capital in 2025. The Central Bank of Brazil predicts that foreign direct investment (FDI) inflows to Brazil this year are expected to reach around $70 billion, close to the high levels of 2024, once again highlighting the resilience of the Brazilian market in the investment scopes of international large enterprises.

According to a report by the website "Exame," in October last year, the Organization for Economic Cooperation and Development (OECD) ranked Brazil as the world's second-largest destination for foreign direct investment, second only to the United States. Such funds are mainly used for long-term investments, such as acquisitions, factory construction, and launching new projects, and are less affected by short-term market fluctuations. This also explains why, despite massive outflows of US dollars over the past four years, Brazil's net productive capital inflows last year exceeded market expectations.

According to the Brazilian Trade and Investment Promotion Agency (ApexBrasil), more than half of last year's foreign direct investment was in greenfield investments, focusing on sectors such as automotive, biotechnology, renewable energy, and information technology.

The foundational strengths of the Brazilian economy, such as strong domestic demand, abundant natural resources, strategic geographic location, and diversified production capacity, are among the reasons attracting these investments. The global trend of "nearshore outsourcing" also works in Brazil's favor, especially against the backdrop of global economic and trade tensions.

This year, several industry giants globally are expanding their presence in Brazil. For instance, a consortium comprising Chevron and PetroChina secured rights to develop nine oil and gas fields in the Amazon River basin in Brazil. Similarly, a consortium involving ExxonMobil and Brazil's national oil company also won bids in the region, further confirming international attention on the development potential in northern Brazil.

In the technology sector, Brazil is preparing to receive new investments in digital infrastructure. The Chinese company Huawei has provided data center solutions for Brazil and is awaiting government tax incentive policies to expand its operations. Driven by the growth in renewable energy and digital consumption markets, companies like ByteDance, the parent company of TikTok, are also interested in establishing data centers in Brazil.

Despite criticisms regarding high interest rates, exchange rate fluctuations, and political instability, long-term investors remain confident in the Brazilian market. Last year, reinvestment of profits by foreign companies in Brazil reached $33 billion. The stock of foreign direct investment reached $1.3 trillion, equivalent to 46.8% of Brazil's Gross Domestic Product (GDP), underscoring the attractiveness of the Brazilian economic environment.

Furthermore, Brazil consistently holds a leading position among Latin American countries in various international reference indices. For example, in Morgan Stanley Capital International's Emerging Markets Latin America Net Total Return Index (MSCI LatAm), Brazil's weight is as high as 60%, reflecting the actual returns investors can obtain from holding stocks in Latin America's emerging economies.

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