The Brazilian Market

Brazil is a large, emerging country with a stable economy and political situation. Its population of nearly 200 million has enjoyed rising income and in recent years more than 36 million people have entered the Brazilian middle class.
 

mundi-2

  • Area: 8.5 million km²
  • Population: 203 million (2014) (Source: IBGE)
  • Capital: Brasília
  • Official language: Portuguese
  • Credit risk: 3 (1= lower risk; 7= higher risk) (Source: COSEC
  • Country-risk: BBB (AAA = lower risk; D= higher risk) (Source: EIU)
  • Currency: Real (R$)
  • Exchange rate (2014 average):1 US$ = R$ 2,36

 

    2010a 2011a 2012a 2013b 2014b 2015b
GNP Market prices USD Billion 2.141,9 2.473,4 2.252,4 2.184,6 2.152,1 2.279,2
GNP per capita USD 11.230 12.830 11.570t 11.110  10.860  11.400
Real GNP growth Var. % 7,5 2,7 0,9 2,0

2,5 

3,3 
Public sector balance % PIB -2,0 -1,9 -1,8 -1,5 -1,4  -1,0 
Public debt % PIB 24,4 24,1 24,5 23,0 22,6  21,8 
Exports of goods and services USD Billion
232,9 294,1 282,8 274,0 286,9  305,8 
Exports of goods and services Var.% 11,5 4,5 0,5 1,5 2,3  4,2 
Imports of goods and services USD Billion
255,0 312,2 315,0 323,6 340,6  374,5 
Imports of goods and services Var.% 36,0 9,9 0,4 6,2 6,7  7,2 
Current account balance USD Billion -47,3 -58,5 -54,2 -74,5 -83,5  -84,6 
Foreign debt %PIB 16,5 16,3 19,5 22,5 25,2  26,1 
Inflation rate (avg.) % 5,0 6,6 5,4 6,4 5,9  5,5 

Source: EIU
Notes (a) Real amounts (b) Forecasts

 

Real Growth in GNP (%)

 

 

Source: Bradesco.
Notes: (a) Real amounts; (b) Forecasts

 

Foreign Trade in Goods and Services - US$ BILLION

 Imports  Exports
 

Source: EIU
Notes: (a) Real amounts; (b) Forecasts
 

 

Foreign Investments

( USD Billion) 2007 2008 2009      2010 2011 2012
Foreign Investments in Brazil 34.585 45.058 25.949 48.506 66.660 65.272
Brazilian investments abroad 7.067 20.457 -10.084 11.588 -1.029 -2.821
Position in global ranking            
As recipient 15a 11a 14a 5a 5a 4a
As investor 37a 20a 179a 25a 238a 160a

 

Direct Foreign Investments in Brazil – US$ billion

 

Source: BRADESCO-DEPEC
(*) Forecast


The Brazilian Market is extremely sophisticated, favored by competition and strong investments in production. There are countless business opportunities, with the coming years alone highlighted by the 2014 World Cup and the 2016 Rio de Janeiro Olympics, which will generate more than US$ 100 billion in business; a federal government program for investment in logistics which, in partnership with the private sector, calls for investments of some US$ 70 billion in highways and railroads; and oil exploration in one of the world’s largest reserves, with capacity for 800 billion barrels, which extends for 800 kilometers along the country’s southern and southeastern coast.

 mercado-brasileiro

Other positive points can be highlighted about the Brazilian market:

  • There is no legal limit for the entrance of foreign capital in the market;
  • There is no limit on foreign investment or deadlines for its realization (except on rare ocassions);
  • There are no limits on the purchase of Brazilian companies by foreign companies;
  • Business activity can be conducted throughout all of Brazilian territory;
  • Large Brazilian and foreign companies having growing budgets for subcontracting.
  • An effective system for controlling payments that is open to public consultation (when someone falls behind on payments, this person is registered in a data base and remains for 5 years, even if it has paid off the debt);
  • Business opportunities generated at large international events that will be held in Brazil through 2016.

 

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