This report presents an analysis of the socioeconomic impacts of European Union investments in Brazil, highlighting contributions across three essential pillars: production, employment, and the transition to a green economy. The research demonstrates that the stock of European FDI in Brazil, which accounts for 40.7% of the country’s total foreign direct investment, generates a significant multiplier effect on production—each real invested produces approximately BRL 2.50 in additional output in the Brazilian economy. In terms of employment, these investments create around 800,000 jobs annually, reflecting a strong capacity to stimulate productive value chains across multiple sectors. Regarding the green transition, the study highlights gains in environmental efficiency, including a reduction in the carbon intensity of production. It also finds that Brazilian green products exhibit higher technological complexity, signaling strong potential for sustainable development. However, the analysis reveals that investments remain concentrated in sectors with lower technological intensity, limiting gains in productive sophistication and innovation. The publication concludes that there is a strategic opportunity to redirect these investments toward high-technology sectors and energy transition industries, thereby enhancing positive impacts on qualified production, the creation of higher value-added jobs, and the consolidation of green value chains, in line with the policy recommendations presented in the report.
This publication is a special release prepared for the 2nd European Union–Brazil Investment Forum, a conference that is part of the EU–Brazil Investment Dialogue project, an initiative developed by CEBRI in partnership with ApexBrasil and the Delegation of the European Union to Brazil. The project seeks to strengthen economic cooperation between Brazil and the European Union, foster a more favorable environment for investment, and deepen dialogue among governments, the private sector, and research institutions on strategic opportunities for economic development and the sustainable transition.
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Please note that this publication is currently available in Portuguese only.
