Brazil’s economic miracle is an example for many countries. It has experienced difficulties in its history, but it has achieved success and now the state is an excellent place to live and do business. Brazilian investment is increasing every year, developing more and more new segments of the economy.
Overview of Brazil’s economy and investment
Brazil was able to recover from a military dictatorship and economic crises. While in 1960 the country’s GDP was $15 billion, in 2011 it reached $2 trillion.
Since 2003, Brazil has taken active measures to improve the macroeconomic situation. Since then, the State has significantly replenished foreign reserves and reduced debt levels by turning them into securities for domestic use and in real terms. In 2008, debt turned into investment and after a period of slowdown, Brazil has shown excellent growth since 2010, making the country attractive for investment.
The country is rich in natural resources. There are oil deposits, and in terms of iron ore production it ranks second in the world. Brazil also produces ethanol. The state is a major supplier of raw materials to the Chinese market.
Despite its strong development, Brazil has challenges that require drastic measures. There was a high unemployment rate and negative GDP, which, combined with China’s slowdown in economic growth, could lead to lower costs for goods and stop cooperating on major projects.
Despite the high risk of investing in Brazil, this option has its advantages. The country has seen positive economic growth in recent years, and investments can bring high returns. But the economy’s dependence on commodities is worrying.
Advantages of investing:
- Brazil’s natural resources are in demand in many countries, leading to high export volumes.
- The state economy shows stable growth.
- Brazil has an extensive oil field, which is located in the sea. It is also ranked 2nd in terms of iron ore production.
Minuses of investing in Brazil:
- The political situation in the country is unstable. Many officials are suspected of corruption.
- The state’s economy is dependent on exports, and if the market is lost, it may suffer losses.
To protect your capital from losses, you should choose the right direction for your investment. You can consider stock exchanges or real estate.
Brazil is a promising country, which has all chances to reach the leading world positions. Therefore, it is worth today to take a closer look at its features and choose the optimal market segment.