Business & Industry
Aug 1, 2016
THE COUNTRY OF CARNIVAL AND THE OLYMPICS ATTRACTS CAPITAL
The beauty and natural wealth that characterize Brazil, from the numerous beaches, to the Amazon Rainforest, and the multiculturalism that makes up its inhabitants, make it resist, despite the difficulties and criticisms faced in recent years, and the country that is also the place of Carnival, culture, football, and the stage of the Olympic Games this August, is still attractive for investors and capital.
With more than 200 million inhabitants, Brazil is a remarkable country thanks to its contrasts of immense beauty, the joy of the people, and the great opportunities for business and investment that coexist, with signs of large social inequalities that are still evident.
Even when the conjuncture is less favourable, and political, economic and social difficulties occur, Brazilians normally react in an optimistic way facing the problems with much more flexibility than other peoples and they don't even lose their traditional sense of humour.
This philosophy of living, that can be translated in the phrase "All is well!", used many times by Brazilians, even when something in not so well, is a symbol of a country where businesses, large or small, are done with joy and a lot of smiles, revealing a promising optimism.
Maybe this characteristic of Brazil is the result of a great capacity over the centuries to integrate immigrants from very different origins and religious backgrounds, that live there together, peacefully. We speak of Italians, Japanese, Germans, Syrian-Lebanese, Spanish, and obviously, Portuguese. Brazil became peacefully independent from Portugal in 1822, and between the two countries ties of brotherhood always remained, as well as the preservation of the common language.
Talking about Brazil implies to speak about the so called "Marvellous City" - Rio de Janeiro, probably the most beautiful city in the World, and that this year will be even more attractive, as it is the host of the Olympic Games 2016, from 6th of August, gathering athletes from all Continents. Just two years ago, in 2014, the Country also hosted the "World Football Championship, showing the great capacity this country has to organize large world events in a short amount of time, even in a less favourable conjuncture.
Also in the business and international trade, Brazil is placed at a relevant position, as it is the 8th world economy, and is the 10th country in terms of foreign exchange reserves, mainly because of its strong export capacity, especially food products, such as coffee, sugar, soya, meat, chicken and natural juices, as well as oil and gas, iron ore, and industrial products of advanced technology, for example motorcars, trucks, ship and planes.
It is impossible to speak about Brazil without mentioning tourism, the main attraction of the country, with the Carnival as one of the most appealing moments, aspects that play an important role in the Brazilian economy. The Country has a large cultural and landscape diversity, extending from the cold snows, near the border with Argentina, up to the tropical Amazonia. The marvellous beaches and the happy and friendly ambiance of its people, are guaranteed to provide nice and well spent holidays. It is not therefore strange that Brazil is nowadays visited by hundreds of thousands of tourists.
The economic strength of Brazil led to it becoming a natural leader among emerging countries, integrating, alongside Russia, India, China and South Africa, the group designated as BRICS that, for the first time in the History of world economy, became a part of "the great ones" and forced the group of the leading countries, designated as G7, to enlarge, in order to include other emergent countries, composing what is today designated as G20.
In few years, Brazil became a major oil and gas producer, continuously increasing its production, alongside other renewable sources, such as hydric, solar and wind, thus removing the need for Brazil to import energy. The Stock Exchange of São Paulo has a dimension and a degree of sophistication that place it among the main ones worldwide, revealing a financial market with a strong capacity to finance projects and corporations in sectors of high potential. To produce its own energy, and a solid private financing are an essential ground for any development process based on prosperous enterprises and the implementation of good businesses.
Notwithstanding the difficulties that Brazil has faced in the last two years, partially due to the fall of the prices of commodities, Brazil keeps attracting capital and investments, mainly from the United States of America, but also from investors of other origins, such as China.
Usually, Your VIP Partner is attentive and draws reader´s attention to countries where there are commercial and attractive investment opportunities, and so it can´t ignore Brazil, a country with which Portugal has great affinity. Being a Mercosul member, the common market of many countries in Latin America, Brazil continues developing their vocation of open host to the World, well visible to anyone that visits not only Rio de Janeiro, but also other important cities such as São Paulo, the largest city in South America, Salvador da Bahia, Belo Horizonte in the state of Minas-Gerais, Fortaleza in the state of Ceará, Porto Alegre in the state of Rio Grande do Sul, among others.
However, for its size, Brazil still needs many infrastructures, such as railways and ports, and to modernize and improve living conditions, which affect a substantial part of the population, and that justify more investment in urbanization and real-estate promotion.
It is important to note that investors that are already active in the country consider it a very attractive destination for new investments and a major challenge to avail of. For an objective analysis of the current situation, and to evaluate new opportunities, Your VIP Partner recommends the consultation of specialists or investment banks with a deep knowledge of Brazil, and its specialized international connections, particularly with Portuguese-speaking countries such as Portugal, Angola and Mozambique.