By Mary Stokes.

The UN Conference on Trade and Development released its annual World Investment Report on 6 July. Trans-national corporations ranked China as the most attractive investment destination, followed by the US and India. The rankings were broadly similar to last year’s. However, Indonesia rose into the top five, displacing Brazil in fourth place.

The president of the Brazilian Society of Studies on Transnational Corporations, Luis Afonso Lima, blames Brazil’s fall in the rankings on slowing growth and greater state intervention in the economy. The market expects FDI inflows to slow this year after Brazil attracted a record USD66 bn last year. Nevertheless, Brazil is far from being the only economy headed for a slowdown, and it remains an attractive investment destination given relatively high yields and its large domestic market.

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