Rua Verbo Divino
1661 - 3° andar, cj. 31
São Paulo, SP 04719-002
Phone: +55 11.3382.8300
From pristine rain forests practically empty of humans, to millions of Carnaval revelers dancing together to the samba and frevo, Brazil has attractions for everyone. Wildlife diversity along with cultural riches characterize this magnificent country, as does its welcoming and vivacious population. It’s no wonder Brazil has been on the fast track of economic growth for many years, moving up on the list of the world’s largest economies and poised for even greater success.
Brazil’s economy boasts many superlatives. It is one of the world’s agricultural powerhouses: the world’s second-largest exporter of soybeans, producer of 80 percent of the world’s orange juice, and over 35 percent of global exports of raw cane and refined sugar. And Brazil produces over 35 percent of the world’s coffee. It is also the top chicken meat exporter in the world. Other exports include iron ores and concentrates, oil, clothing, and cars.
Rich, arable land, across a country that’s about the same size as the United States, isn’t the only reason Brazil is one of the world’s biggest commodity exporters. There have been huge investments in technology and research that, among other achievements, have modernized agriculture and manufacturing. The renewable energy industry is expanding, with opportunities abounding for foreign direct investment; not since 2008 have there been so many new areas for oil and gas exploration open to bidding.
The government has taken many steps to institute a variety of monetary and fiscal stimuli, including tax and interest rate cuts to bolster domestic demand and consumption. There are also new incentives for companies that keep their workforces intact. And an increase in infrastructure investment has also helped to shore up the economy. This is why Brazil has maintained one of the world’s lowest rates of unemployment among both emerging and established countries.
In fact, freeing infrastructure bottlenecks has been a key undertaking. The government has undertaken more than $500 billion in infrastructure projects, including large energy initiatives. The government has also begun auctioning road, railway and airport concessions. There is also a plan to expand and dredge public ports, with healthy competition to identify the organizations that can ship the largest volume at the lowest price. Brazil has also committed $11.3 billion to World Cup preparations and $14.4 billion for the Rio Olympics.
In economic circles, infrastructure expansion has often been seen as a good investment. And as Brazil’s manufacturing base and industrial capabilities also increase, this economy will continue to expand. In addition, Brazil is also seen as a prime target for foreign investment. Investor interest has long outpaced the number of available investment opportunities for private equity.
Growth in the life sciences industry is a growing attraction for foreign direct investment; Brazil has the largest healthcare and medical devices market in Latin America. While healthcare is mainly provided by the state, there are clear opportunities in this sector. These include high-end medical devices, e-health and remote diagnostics, and medical education and training as Brazilian institutions look to partner with foreign organizations.
The future looks bright for Brazil. To make the most of the many opportunities that are available, one needs a partner like Boyden with an intimate knowledge of the Brazilian business climate. Boyden pioneered the search business in Brazil, opening its São Paulo office in 1968. The local partners are a multicultural mix of nationalities and language skills. Their local knowledge, combined with the global perspective offered by the greater Boyden organization, is the key to the success that Boyden’s candidates and clients find here.