Ten reasons for UK businesses to invest in Brazil

Doing some research into emerging markets, we’ve come across this useful article by KPMG outlining ten reasons why UK business investments in Brazil are more likely to succeed. A good summary of the key opportunities for UK businesses in a main emerging market…

In summary, the reasons are:

- Brazil’s economy is riding the worldwide boom in raw materials: the global boom in commodity prices is supporting the govt budget and stimulating new investment in commodity production

- Brazil’s economy is leaving behind classic “boom and bust cycles: the economy is entering a phase of more stable and sustainable growth

- Brazil is gaining better control of currency fluctuations and inflation: relatively low inflation and falling interest rates provide a better climate for investment

- A stronger middle class is forming in Brazil: 24 million people entered the Brazillian middle classes (as measured by household income) during 2006-8

- Brazil’s home consumption is booming: rising household incomes + more than half of the Brazillian population is now under 25, stimulating a boom in consumer spending

- Brazil’s rating has been upgraded to “investment grade”: better credit rating reduces the risks of investing

- Brazil is beginning a catch-up campaign in infrastructure investments: substantial investment in infrastructure - particularly transport

- Brazil Surpasses France as Number 6 Worldwide in Automobile: automotive sector spawns a wide network of supporting industries and businesses

- The US Financial Crisis is Not Derailing Brazil: Brazil now much less reliant on trade with the US

- Brazil will host the FIFA Soccer World Cup in 2014: a significant stimulation to infrastructure investment