Few economies have grown as much as the Brazilian economy
The consolidation of the currency stability and the deepening of a series of structural changes – such as the economy opening, state reform, monopoly suppression and a wide set of deregulations, etc., – have allowed the Brazilian economy to assure its dynamics and its growth path on a supportable basis.
And the international community has taken a chance precisely on this process enhancement. There are increasing direct external investments in the Brazilian economy as well as the input of capitals via long-term loans.
Actually, transnational companies have been investing in Brazil since long ago. There are hundreds of companies legally established in the Country for many decades. Just to name a few, among a huge number of them: Alcatel, Asea-Brown Boveri, Basf, BAT, Bayer, Ciba-Geigy, Chase Manhatan Bank, Citicorp, Cr?it Lyonnais, Du Pont, Dow Chemical, Ericsson, Exxon, Fiat, Ford, Fuji, General Electric, General Motors, Glaxo, Goodyear, Hoescht, IBM, Ishikawajima-Harima, Kodak, Lloyds Bank, Marubeni, NEC, Nestl? Parmalat, Philips, Rh?e Poulenc, Robert Bosch, Shell, Sony, Toyota, Volkswagen, Volvo, White Martins and Xerox.
Brazil relies on major comparative advantages:
- A huge territorial extent, with plenty of natural resources, some of them entirely unexploited to date.
- An enormous population with a dynamic and fast growing internal consumer marketplace, such a trend being boosted by the income proceeds resulting from the sharp drop in the inflation rate.
- An economic integration within Mercosul — the free-trade zone initially made up of Brazil, Argentina, Uruguay and Paraguay — with the corresponding expansion of marketplaces and business opportunities.
- A deep-rooted, dynamic, and profitable capitalist economy with availability of skilled human resources, including on a management level.
- A relevant presence of foreign capital, particularly on the industrial structure where it accounts for 30% of the production.
- A well-developed industrial center, with a diversified export agenda which comprises from mineral ores and orange juice to highly value-added manufactured products such as cars, airplanes, ships and capital goods.
- Diversified export marketplaces.
- A modern and integrated agriculture presenting one of the world’s largest crops of around 80 million tons.
- Stability of the democratic political institutions.
Source: Brazilian Development Bank – BNDES