brazil economic outlook and opportunities for business with the czech republic marcelo vaz de campos...
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BrazilEconomic outlook and opportunities for business with the Czech Republic
Marcelo Vaz de CamposEconomic officerEmbassy of Brazil in Prague
Festival Exportu CZPraha, 19.6.2014
What is Brazil? “Tropical paradise”
“The country of the Amazon, carnival and soccer”
But it is also... Agricultural powerhouse: top producer of sugar, biofuel,
orange juice, soybeans, poultry and beef Third biggest aircraft manufacturer in the world (Embraer) Developer of cutting-edge technology in offshore oil drilling
Brazil in numbers 8,5 million sq.km of area – 5th largest country in the world,
the largest in the Southern hemisphere
200 million inhabitants (est. 2013) - 5th most populated in the world
GDP: USD 2,5 trillion (IMF 2012) - 7th in the world
Surface: bigger than
5 million sq.km
Population: more than 150 million
GDP: higher than USD 1 trillion
Besides the USA, China, India and Russia, Brazil is the only country to rank among the top 10 in area, population and GDP
Steady and substantial growth
Rate of 3,8% per year in the last 10 years
Increasingly important for global finance
4th largest recipient of FDI in 2013 (after USA, China, Hong Kong)
The basics are in good shape
Committed to fiscal targets (deficit ±3% of the GDP)
Foreign debt is under control (14% of GDP)
Foreign reserves are high (20% of the GDP)
Unemployment is low (less than 5%)
Declining poverty and inequality
Economic growth with social inclusion
30 million people were raised out of poverty in 20 years 65 million new bank accounts in 10 years
Stronger consumer market
One of the best economic and social moments of the country’s history
Why do business with Brazil?
Like the ČR, it is a democratic country with Western values.
It is easier to do business with Brazil than it is with other emerging countries.
It is a gateway South America, being well connected with all South American capitals.
It has trade agreements with the biggest economies of the continent.
The future Growth requires more than market expansion
Efforts to make the economy more competitive Decrease production costs (less tax, better logistics) Increase productivity (education, R&D)
Modernization requires investments: Communications Housing Energy generation Transport
Opportunities for investments, but also machinery, products, etc.
Foreign trade
Relatively to the size of the economy, foreign trade in Brazil is still small: only 20% our of GDP (possible reason: strong internal market).
Positive aspect: diversified range of partners: European Union: 20% China: 17% USA: 11% Mercosur: 10%
Bilateral trade with the Czech Republic is around USD 900 million per year: there is plenty of room for growth.
How to know more
ApexBrasil: investment opportunities (BrasilBeyond) www.apexbrasil.com.br
BrasilGlobalNet: general business opportunities www.brasilglobalnet.gov.br
Exporters’ showcase: find a trader www.vitrinedoexportador.gov.br
