Brazil Business Opportunities
Characterized by large and well-developed agricultural, mining, manufacturing, and service sectors, Brazil's economy outweighs that of all other South American countries and is expanding its presence in world markets. Brazil is the 8th largest economy in the world.
- Key Industries:
- Textiles, Shoes, Motor Vehicles and Parts, Chemicals, Cement, Lumber, Iron Ore, Tin, Steel, Aircraft, Other Machinery, Equipment
- Key Imports:
- Machinery, Automotive Parts, Oil, Electrical and Transport Equipment, Chemical Products, Electronics
- Key Exports:
- Soybeans, Autos, Coffee, Transport Equipment, Iron Ore, Footwear
In 2015, the Country’s leading markets for exports were China 18.8%, U.S. 12.7%, Argentina 6.7%, and Netherlands 5.2%. Its leading suppliers were U.S. 15.6%, China 17.0%, Argentina 6.0%, and Germany 6.1%. Its key trade agreement is the Mercosur pact; members include Brazil, Argentina, Uruguay Paraguay and Venezuela; associates include Bolivia, Chile, Colombia, Ecuador and Peru.
Business and Market Sector Opportunities
Commodities • Manufacturing • Agriculture • Telecommunications • Retail Automotive • Banking • Energy • Oil and Gas
Economic Background and Situation
Capital inflows continue to strengthen along with currency appreciation. The resilience in the economy stems from commodity-driven current account surpluses, and sound macroeconomic policies that have bolstered international reserves, reduced public debt, and allowed a significant decline in real interest rates. A floating exchange rate, an inflation-targeting regime, and a tight fiscal policy are the three key elements of the economic program.
The President has continued his commitment to fiscal responsibility and restraint, targeting inflation through the central bank, and floating exchange rate. Presidential elections are scheduled for 2019.
GDP growth has slowed since 2011 due to high costs, low productivity, high inflation and low levels of investment. Outlook for 2018 is mixed with low GDP growth and a devalued real.