Investment Shifting From U.S. To BRIC

Companies are expected to shift investment over the next five years from the U.S. to BRIC countries according to KPMG International, as reported at Financial News Online. As a result of the shift in investment, by the year 2014 China is expected to be the leading recipient of corporate investment worldwide, rising to 24%, while the U.S. falls to 23%. Of the BRIC countries, India is expected to have the largest shift in corporate investment during the next five years, going from 8% to 18% of worldwide corporate investment. Part of the shift is explained not only by the emergence and growth of the BRIC economies, but also by a desire for corporations (and investors in corporations) to diversify and take on greater international exposure.