Posted by: changholt | May 17, 2010

Brazil another view

Soccer, Carnaval, Bossa Nova and Caipirinha. Those are words that can describe Brazil. But Brazil is a country of much more; the country is now experiencing a growth like never before.  Brazil is one of the first countries to lead the world economy out of recession. Its economy is growing at an annualized rate of 5%.  And it is expected to accelerate over the next few years as big new deep-sea oilfields come on stream and as Asian countries’ appetite for food and minerals from Brazil’s vast and bountiful land grows.  Research indicates that sometime in the decade after 2014, Brazil is likely to become the world’s fifth-largest economy, overtaking Britain and France

Continued economic growth will be fueled, in part, by Brazil hosting the World Cup in 2014 and the Summer Olympics Games in 2016.  Since these announcements: the Brazilian government has earmarked 3 billion reals (US$ 1.8 billion) for investment in public work projects.  Not to be left out, international companies have been working on strategies to grow their business in the country, for example: Emirates Airlines, Adidas, Coca-Cola, Sony, Kia and Visa are the official sponsors of the World Cup and are already expanding their investments.

Coca-Cola in Brazil projects a growth of more than 75% in the next 5 years (2010-2014) reaching 11 billion reals (US$ 5.8 billion).  Signally their commitment, the company has recently opened a new plant in the country.  Adidas and Nike are fighting for a better position in the market in sporting goods. They each want to win even more market share during the years before the Cup.

No one can deny that the economy in Brazil is more stable than ever and there is a momentum that encourages investments and expansion.

If you want your business to expand and are looking for a new market to invest, Brazil is one of the best options.  For information on how to take the next step, we can help.

By Filipe Silveira (HSI intern)


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