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Invest in Brazil

There has never been a better time to invest in Brazil. As part of the BRIC supergroup – Brazil, Russia, India and China – it is among the most exciting emerging markets in the world.

Thriving economy

Brazil is among the world’s tenth largest economies and accounts for over 40 per cent of South America's total GDP. Within the next 30 years, the BRIC countries are expected to have a combined economy larger than the US and Japan. Significant restructuring of Brazil’s public finances and monetary policy led to it gaining investment grade status in 2008.

The country has made a swift recovery from the global recession. With interest rates at an all-time low and inflation stable, the private sector is booming and investment is flooding in. These factors have shielded Brazil from much of the pain of austerity measures being experienced elsewhere.

Energy self-sufficient

Petrobas, the state-owned oil company, is developing two newly found deepwater oil fields with a $174 billion investment programme over five years.
Brazil’s target is to double production of oil by 2012 to 3.5 million barrels a day. This will place it among Middle Eastern rivals such as Kuwait and Saudi Arabia.

The latest oil and gas discoveries have firmly catapulted the country, which is already the leading producer of ethanol in the world, into energy self-sufficiency. Its manufacturing industries are also thriving.

World’s top place to invest

Brazil recently overtook the United States as the best place to invest. Analysts and traders rated it first for potential returns in 2011. With the country due to host the World Cup in 2014, it is a prime time to invest in Brazil.

Since 1995, Brazil has invested heavily in tourism. Foreign visitor numbers have rocketed to £9 million from just £1 million a decade ago. In the lead up to the World Cup, which will see tourism levels rise to a new all-time high, the Government will spend over $25 million on infrastructure. All eyes will then once again be on Brazil for the Olympic Games in 2016.

Leading export industry

Goldman Sachs predicts the BRIC group will soon be responsible for 50 per cent of worldwide demand for exports due to their growing domestic consumption.

In the last two decades, Brazil has become a superpower in agricultural exports. It is now the world’s biggest exporter of beef, chicken, orange juice, green coffee, sugar, ethanol, tobacco and the ‘soya complex’ of beans, meal and oil.

Land in Brazil is also proving extremely profitable as the initial outlay is low and returns high.