Amid the political and economic turbulence occurring around the world, Brazil stands out as a reliable destination with opportunities for new businesses and foreign investments. The country is resuming the path of sustainable development, showing improvements in its economic performance indicators, after a challenging period due to the effects of the COVID-19 pandemic: inflation control , falling interest rates , increased consumption, GDP growth, and a plan to reduce the public deficit. The macroeconomic scenario presents greater predictability and stability, increasing confidence for foreign investors, both those who bring capital to invest in financial assets in Brazil, as well as economic agents who invest  in the industrial, agribusiness, and services sectors.

Economic Growth

In 2023, the Brazilian economy grew by 2.9%, and the Gross Domestic Product (GDP) closed at 2.17 trillion dollars, according to data from IBGE , after having grown  2.9% in 2022.

Brazil also stands out as a global destination for foreign direct investments (FDI), and totaled  64 billion dollars in FDI in 2023, the fifth-largest beneficiary among emerging markets, according to data from the United Nations Conference on Trade and Development (UNCTAD).

Brazil in Big Numbers

• • Population: 203 million
  • Ninth largest economy in the world: GDP of 2.17 trillion dollars in 2023
  • Economic growth in 2023: 2.9%
  • Foreign Direct Investments in 2023: 64 billion dollars
  • Fourth largest agricultural producer in the world
  • Ninth largest oil producer in the world
  • 8% of the world’s renewable energy production
  • 1.3 million tons of cargo transported through Brazilian ports

Sources: IBGE, APEX, and OECD

The Map of Opportunities

Brazil is advancing  in positioning as a global player and offers a list of thriving sectors with high potential for external investment.

Alongside the positive macroeconomic scenario, the Brazilian government is seeking to   become  a relevant player in attracting international businesses, with emerging prospects in several fronts.

The new Growth Acceleration Program (PAC), launched by the Government, brings opportunities for national and international partnerships. Together with  the private sector, PAC will inject 300 billion dollars into key areas for Brazil’s growth, including:

• Agribusiness — responsible for a quarter of the country’s GDP, it is one of the frontiers to be explored: 40% contribution to global food production by 2050.
• Sanitation — the sector’s legal framework foresees the universal access to water and sewage services throughout the country by 2033:  investments of 140 billion dollars are required over 10 years.
• Logistics and Mining — due to the need for modernization of ports, airports, highways, and railways: 1.7 million kilometers of highways, 550 million tons transported by on railways, 15th largest proven oil reserves, 9th largest oil producer in the world.
• Energy — Brazil is one of the major leaders in the transition to a low-carbon economy. Brazil’s energy matrix is predominantly renewable, and offers  opportunities in green hydrogen, ethanol, biofuels, wind, and solar energy: 80% of the energy generation capacity comes from renewable sources, 3rd in the world in share   of renewable energies in the energy matrix, 8% of all renewable energy production in the world.
• Innovation — for the third consecutive year, the country climbed positions in the Global Innovation Index (GII). In the 2023 edition, conducted by the World Intellectual Property Organization (WIPO), Brazil was the one that advanced the most in the ranking — climbing five positions —, consolidating its position among the 50 most innovative economies in the world. According to WIPO, the country’s innovation performance is so significant that it has consistently surpassesed its own level of development: 14,000 Startups, 220 Fund Managers, 24 of the 45 Unicorns in Latin America (startups valued at over 1 billion dollars), 66% of the capital comes from international investors.

The attractiveness could be even greater with the approval of reforms capable of improving the Brazilian business environment — the tax reform, approved and enacted , and currently being regulated in Congress, is one of the government’s main bets in this regard.

Conclusions and Perspectives

With the identification of the areas with the greatest potential to attract investments from a macroeconomic perspective and expert analysis, and the validation with the Government on what is prioritized and intended to be stimulated in the economy, it is possible to understand why the country presents itself as a strategic choice for new projects, besides showing the world the opportunities the country presents  in a global scenario of energy transition, innovation, and focus on food security.

The economy has shown its strength with GDP growth of 2.9% in 2023 and 0.8% in the first quarter of 2024, with  Brazil positioned as the ninth-largest economy on the planet.

The agenda has challenges for the Government: ensuring the proposed fiscal adjustment and approving structural reforms, such as the overhaul of the Brazilian tax system, to ensure that the country efficiently distributes wealth among its citizens.

The 203 million Brazilians living in the country’s 8.5 million square kilometers have the same desire: to prosper through personal effort and build a better life.

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