A top Brazilian banker and investment expert named Igor Cornelsen wrote an article for PRnewswire, and he had a lot to say about investing in Brazil as being one of the largest economies in the world and being an emerging economy at the same time. In his article, which can be found in its entirety by clicking here, he also discusses the many problems Brazil has, especially the problems that stemmed from the policies of two-term President Dilma Roussef. Additionally, Igor Cornelsen offered a few tips about investing in South America’s largest economy.
Igor Cornelsen seems to love Brazil, and he sees the potential for it. He sees a future where, if the country is properly managed, can become a highly influential nation on the world stage economics. Unfortunately, his article mentions quite a few hurdles to overcome before it can fully reach its potential. The immediate problem is broken political promises and quite possibly corruption at the presidential level. President Dima Roussef gave the country her word during her second campaign to change the policies she had when she ran as a far-left populist candidate. Unfortunately, her populist policies are still in place, and they look like they are going nowhere.
Another thing that is keeping local and foreign investors away are the financial scandals coming from Petrobras. There is not just one or two scandals either. There has been a string of scandals perpetrated by the energy company. They went to court in 2015, and the parties responsible faced justice. Afterwards, Petrobas had to adjust their balance sheet. This forced the market to slate and reflect the correction. The whole ordeal has been devastating to the Brazilian economy.
Minus the scandals, there is a lot of interest among investors as far as Brazil is concerned. As stated before, Brazil has a huge economy, population, a sizeable market and land mass full of valuable natural resources. Additionally, there are over 200 million people in Brazil, and it has a track record for multinationals finding it to be a great market. Read the full article to see the three tips for prospective investors.