7 Reasons for Investing in Brazil
1. Strategic Location and Market
- The Brazilian total area is 8,514,876,599 km²
- 190 million of inhabitants
- The Brazilian GDP measured in PPP represents 35% of the whole Latin America GDP, reaching more than US$2 trillion PPP in 2007.
- The consumption market covers more than 900 million of potential consumers, considering Brazil, Latin America and North America.
- Brazil borders almost all the South America countries, except Chile and Ecuador.
2. Sustainable Growth
- Brazil is the world’s sixth biggest economy, together with the United Kingdom, France and Italy, ahead of Spain, Mexico and South Korea.
- The Brazilian economy presents a sustainable and strong growth. The Brazilian GDP growth rate reached 5.3 per cent in 2007, with an inflation rate of 3.7 per cent.
- More than 32% of the jobs created in Latin America in 2007 were in Brazil.
- Since 2003, the Brazilian exports have shown a growth rate bigger than that of the world imports, resulting in a higher Brazilian participation on the world trade.
3. Innovation and technology
- Brazil has the biggest and most diversified science, technology and innovation system of Latin America.
- It has a competitive differential within the sectors of aircraft building, oil exploration in depth water and software development.
- Brazil has internationally consolidated its competence in producing ethanol and biodiesel fuel.
- Excellency in the equipment production and medical hospital services supply.
- In 2006, there were 9.396 new graduated students at the doctor’s level and 29.761 at the master’s in Brazil.
- The growth rate in number of personal computers between 2002 and 2007 increased more than 120%, reaching more than 29 million. This number represents 40% of the whole Latin America personal computers during those years.
- The Brazilian Internet users’ number increased more than 270% in the last five years, representing 53 million users.
- 67 airports with annual flow of 110 million people.
- 46 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.
- Brazil has one of the best communication structures with 125 million mobile lines, at about 42 million fixed lines and more than 1 million public telephones.
- Brazil will, through the Growth Acceleration Program of the Brazilian Government, invest (considering public and private resources) US$16,5 billion in roads, US$ 3,9 billion in railways and US$ 1,3 billion in ports.
5. Investment profitability
- In the last years the Brazilian return on investment overcame the 26% annual mean.
- The foreign companies settled down in Brazil are free to send their profits to their country of origin.
- Brazil received, in 2007, 30% of the Foreign Direct Investment intended to the Latin America, resulting in a 99% growth rate.
6. Work Force
- Brazil’s economically active population represents 36% of Latin America total population, having reached 92 million people in 2007.
- 16 million people with higher education level have technical-scientific activities.
- 6 million was the total number of registered students in technical and higher education in 2006.
- There has been an increased growth in the Brazilian work productivity, in the latest years.
7. Natural resources
- One of the worldwide largest producer and exporter of agricultural products.
- The world’s largest producer of ethanol, with 308 installed production plants, producing 17,7 billion liters per year.
- The world’s largest producer of iron ore.
- The worldwide largest producer and exporter of coffee, sugar cane and fruit juices.
- The world’s largest exporter of soy, meat, chicken and leather.
- Self-sufficient in oil, going from net importer in 2005 to net exporter, representing the sixth exportable sector in the Brazilian foreign trade.