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 2018, the Country’s leading markets for exports were China 21.8%, U.S. 12.5%, Argentina 6.1%, and Netherlands 4.3%. Its leading suppliers were U.S. 16.7%, China 18.1%, Argentina 6.3%, and Germany 6.1%. Its key trade agreement is the Mercosur pact; members include Brazil, Argentina, Uruguay and Paraguay; associates include 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 were held in 2018. The newly elected conservative president takes office January 2019.
GDP growth outlook for 2019 is mixed with GDP growth projected at 1.3% and low interest rates.