Business Brazil

The Federative Republic of Brazil is the largest and most populous country in Latin America, covering 47.3% of South America’s territory, and is the fifth largest country in population and area in the world – covering 8.5 million square meters. It’s population is over 186 million inhabitants. The Brazilian economy is the biggest in Latin America, with a gross domestic product of US$ 1,066 trillion, placed 10th in the world, more than countries such as India, Russia, South Korea, Mexico and Australia.

Brazil is recognized as one of the most open and tolerant countries for different cultures and is attractive because of the miscegenation of its people. The country is looked positively worldwide because of its happy and friendly people and the absence of ethnic and cultural conflicts.

Besides its natural beauties, Brazil has many other potentials which make it attractive for investments in many sectors, for instance, Tourism ands Real Estate. The following factors give Brazil good alternatives of investments:

Real Estate Market

The Brazilian real estate market is now in a very positive phase. The sector has suffered in recent years, but has gained strength and has already exceeded its previous best results, with substantial increases in investments and credit availability and lower interest rates, maintaining the economy stability which has become more prevalent in Brazil. The strength of the Brazilian real estate market has attracted a significant amount of foreign capital and there are strong grounds to look forward to continued industry growth.

• Great potential and high growth rates in the real estate market based on a 7.9 million habitation unit deficit, as well as additional requirements to build 1.4 million houses a year.
• Falling interest rates have generated a succession of real estate financing records, set to exceed 2% of GDP and reach 12% in 2014.
• The great number of young people joining the labor market in the coming years, is generating an impact on the real estate market.
• Foreigners have the same rights when it comes to purchase property.
• A growing number of business are being open and issuing shares on the stock market. This has led the market to an increase in investments.
  

Economy

The Brazilian economy has become significantly more stable in recent years and much more foreign capital is now invested in national activities. Brazil is attractive because of the levels of returning capital, the open economy with low competition costs, low risks and high yields. Besides, there are other economic highlights.

* Brazil, alongside China, India and Russia, is part of the BRIC, i.e. it will be one of the five largest economies in the world by 2050, according to a Goldman Sachs study.
* With solid democratic institutions, credit macroeconomic management and respect for foreign companies rights and agreements, Brazil is an example for Latin America and a paradise for international investors.
* Political and economic stability in the country are additional guarantees for foreign investors.
* Brazil is only one step away from reaching "investment grade", assuming that there will be an explosion in international investment in the country.
* The Brazilian economy represents almost half of Latin American GDP.
* The country presents massive opportunities because of the size of the domestic market, 186 million people.
* Brazil is nowadays one of the world's 20 major exporters, selling $137.5 billion in products and services to other countries.
* Economic stability and inflation control are reducing poverty and increasing the size of the middle class. The new Brazilian middle class alone ( 35 million families ) is 8% bigger than the population of Germany, or bigger than the populations of the Czech Republic. Belgium, Hungary, Portugal, Sweden, Austria, Finland Denmark, Norway, Ireland, New Zealand, Luxembourg and Iceland all together.
* Brazil is the fifth country worldwide in terms of purchasing power, with more than $ 1 trillion in Purchasing Power Parity.
* According to a Goldman Sachs survey, the number of people living on more than $ 3,000 per year will double in Brazil by 2015.
* There are no restrictions on exporting profits or disinvesting capital for foreign investors.