Over the last few years Brazil has emerged to become a serious global player.  It possesses the world’s 5th largest landmass and 8th largest economy.  Brazil is becoming the foremost regional power, and a leading attractor of foreign direct investment.  As part of the “BRIC” markets (Brazil, Russia, India and China), Brazil is one of four emerging markets that combined are expected to make up almost half of the world’s GDP growth by 2020.  The drivers of Brazil’s extraordinary growth are diverse, including mineral resources, agricultural goods, energy, water and high technology goods such as airplanes.

Brazil currently adheres generally to conservative macro-economic principals and is focused on targeting inflation, maintaining a floating currency, carefully managing debt and protecting large dollar reserves. It boasts world-class banking and finance sectors, which includes the world’s third largest stock exchange.


Positive Growth Outlook

Brazil is currently a major producer of key agricultural products and the world’s 4th largest food exporter. Agricultural production is likely to continue increasing in light of 150 million acres of arable land that remain uncultivated.  Pastureland covers a quarter of the country, which supports Brazil’s status as the largest producer of beef in the world.

In addition to strong agricultural production, Brazil is rich with natural resources.  Brazil currently produces large volumes of precious metals, iron ore and many other highly valued natural resources, including one of the largest reserves of uranium in the world.  In addition, new oil and gas reserves continue to be discovered and tapped.  Natural resource development has created new wealth and stimulated business and productivity across all sectors of the economy.


Regional Integration

Schulze Global views Brazil’s regional integration with neighboring economies as an important step towards sustainable growth. Between 2000 and 2009, Brazilian trade with the Southern Common Market countries (Argentina, Paraguay, Uruguay and Brazil) rose 86 percent, its trade with the Andean Community (Bolivia, Colombia, Ecuador and Peru) grew by 253 percent, and its trade with Mexico increased by 121 percent. Often with preferential financing from the Brazilian Development Bank, Brazil’s global companies have become major actors in infrastructure projects throughout the South America region.


Strong Africa and China Connections

China is now Brazil’s largest source of foreign investment and has also become Brazil’s largest export market for soy, oil and iron. The ties between the two countries continue to increase, especially as China’s demand for natural resources and food products grows. Brazil has also made major investments in Africa, and opened 16 new embassies on the continent in the last decade.