So Why Brazil? Why Now?
Economic Growth & Resilience
- Brazil will be the 5th largest world economy by 2050 in terms of GDP.
- The country was able to sustain the global crisis better than most developing and developed countries in the world.
- Exports have doubled in the last four years, and imports have increased in a similar pace.
- Brazil ranks amongst the world’s 6 biggest economies ahead of Spain, Mexico and South Korea.
BRIC
- Part of the leading emerging economies denominated BRIC by Goldman Sachs.
- By 2050, Goldman Sachs predicts that Brazilian GDP will grow at a faster rate than that of China and Russia
- Unlike other BRIC countries, Brazil has a stable democracy, no ethnic or regional conflicts and speaks one language
- The Brazilian banking industry has an enviable outlook. No Brazilian bank went bankrupt following the financial crisis.
- Companies listed in BOVESPA Stock Exchange (Bolsa de Valores de Sao Paulo – the main stock exchange in Brazil) have more than doubled between 2008-2009.
- The finance sector in Brazil is set to become a key player in the international arena.
- Companies like Vale and Petrobras are growing exponentially
International Investment Status
- The rating agency Standard & Poor’s upgraded Brazil’s investment grading to BBB-
- The 30% increase in FDI in Brazil in 2009 is a reflection of the new confidence of global business in Brazil.
- Foreign companies settled down in Brazil are free to send their profits to their country of origin.
Stable Political Environment
- Brazil is one of the biggest democracies in the world
- It has one language and one faith and does not face ethnic, religious, linguistic conflicts, terrorism or troublesome neighbours
- Brazil has no border disputes
- Brazil does not have ideological polarisation nor extremist political parties.
Tourism
- The 2014 Football World Cup will be held in Brazil
- The 2016 Olympic Games will be held in Rio de Janeiro
- Construction, transport, tourism and steel manufacturing in particular, are likely to benefit substantially from increased demand for local facilities.
Natural Resources
- One of the worldwide largest producer and exporter of agricultural products.
- The world’s largest producer of iron ore
- Self-sufficient in oil and predicted to become a major player in the Oil & Gas industry
- The worldwide largest producer and exporter of coffee, sugar cane and fruit juices.
- The world’s largest exporter of soy, meat, chicken and leather.
- The world’s largest producer of ethanol
Infrastructure
- 67 airports with annual flow of 110 million people.
- Ports with capacity for over 600 million tons/year
- 29,596 km of railways – the eleventh world railway mesh.
- 1.6 million km of roads – the third world road mesh.
- 100% digital telephone lines in Brazil
- Government to invest US$313 billion in roads, railways and ports by end of 2010.
Growing Retail Market
- 3rd largest cosmetics market4th largest cellular phone market
- 5th largest population, market for books and music
- In the next 15 years, São Paulo, will establish itself as one of the main consumer centres in the world and it will have a middle and high income population bigger than London and Paris.
- The consumption market covers more than 900 million of potential consumers, considering Brazil, Latin America and North America
Innovation and Technology
- A competitive differential within the sectors of aircraft building, oil exploration in depth water and software development.
- The biggest and most diversified science, technology and innovation system of Latin America.
- The growth rate in number of personal computers between 2002 and 2007 increased more than 120%
- Expected to be the 3rd largest market for PCs by end of 2010
1 comment:
Tiffany, a valuable continuation to the material exposed in my post. Thanks!
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