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Brazil, one of the most important growth markets and the 3rd largest democracy in the world, has half of the Gross Domestic Product (GDP) for all of Latin America. It is the 8th largest automobile producer and 11th largest economy in the world. About 80% of the Fortune 500 Companies are in Brazil and more than 7,900 companies have already ISO-9000 certificates. Producing for the Brazilian market means small risks and big rewards. There are good reasons to export to this newly-industrialized nation with a domestic market of 170 million people and export opportunities in the Mercosur area.

For many decades, Brazil was plagued with high inflation. Finally, the government brought prices under control in 1994 and, since 1995, the country has enjoyed single-digit inflation. Nowadays, economic stability, trade liberalization, strict fiscal control, capital market improvements, economic reform programs, and many other factors have turning Brazil to an emerging country.

 

THINGS YOU MIGHT NOT KNOW ABOUT BRAZIL

  • General:

Size:                               8.5 sq.km, 5th largest in world

Population:                  176 million, 5th largest in world

Consumer power:      Among world #3 markets for executives jets, soft drinks, analgesics, motor cycles.

Quality:                          7,900 companies have ISO-9000 certificates.

Modern agriculture:  31 international farming technology research partnerships

IT:                                   A world leader in Internet banking and e-government.

Tourism:                       A growing destination for international tourists.

 

  • Agriculture and the environment:

5 million farmers => market potential (cf. Europe has 6 million)

Climate + soil => wide crop diversity with high productivity

170 million beef cattle => the world's largest grazing herd

Enormous biodiversity => potential for research & development

 

  • Brazil is:

World #1 producer of sugar, oranges, coffee and papaya

World #2 producer of soybeans, beef and poultry

In world #10 producers of cocoa, corn, cotton, rice, tobacco

 

  • Brazil has:

Resources:    around 12% of world's freshwater

Clean energy: hydropower provides 85% of total electricity

Sustainability: world-leading productivity in reforestation

 

 

  • A huge domestic market:

Only China, India, the US and Indonesia have larger populations

Labor force is 79 million - and growing

97% of children are enrolled in school

More than 80% of Brazilians live in cities - 10 of which have more than 1 million inhabitants

   

  • Every year, Brazilians consume

World 4th => 8.45 billion liters of beer

World 6th => 980,000 tons of pasta

World 6th => 39 million tons of cement

 

  • A player in the globalized economy

Trades regularly with more than 40 countries, including all developed nations.  

Economic leader of the Mercosul free trade block (225 million people, includes Argentina, Uruguay and Paraguay)  

Direct flights to USA - 15 each day, to 6 major cities  

Direct flights to Europe - 19 each day, to 8 major cities

 

  • Brazilian companies export

-         Machinery to India

-         Baby clothes to Italy

-         Mobile phones to Argentina

-         Aircraft parts to the U.S.

-         Piston engines to the U.K.

-         Dental chairs to Russia

 

  • Investment and trade

-         A top choice worldwide for foreign direct investment (FDI)

-         Third-placed FDI destination among developing countries in 2002

-         Over US$ 70 million per day in FDI inflows, 1998 - 2002

-         FDI over 35 countries - U.S., Spain, France, Germany are recent major players

-         Concessions and public-private partnerships are attracting investment and improving local services

-         Companies recently making US$ 100 million-plus investments: Ford, GM, Renault, Telefonica, Santander

 

  • Economic and political stability

-         Political, ethnic and religious stability

-         Consolidated democracy; mature institutions

-         IMF, World Bank praise Brazil's economic policies

-         Brazilian Central Bank uses monetary policy to ensure single-digit inflation

-         Society commited to economic stability

-         Federal, state and municipal governments have legal obligation to balance the books

-         Free media and independent judiciary guarantee transparency of the political process

 

          Source: Investe Brasil 2003

 

Copyright © 2005 José Antonio Azevedo
Last modified: 18 February, 2005