Brazil has persistently and consistently proved to the world to be Latin America’s stronghold over the past few decades. The country, which is now the fourth largest economy in the world, has become a dynamic global market. Brazil has a phenomenal economic formula incorporating social inclusion and respect for the environment. Besides that, Brazil has shown incredible resilience in the face of major global economic downturns, coming very close to China. These impressive macroeconomic credentials of Brazil have contributed to influx of foreign investors into the country.
Steady Brazilian economic development
The Brazil of today is totally different from the Brazil of the 1980s. The country was then featured for unending international debts, a scenario that has drastically changed. In 2010, Brazil paid off its debt to IMF which reduced the net debt-to-GDP ratio to 35%. The country has developed conditional cash transfer to families to elevate its citizens from poverty. 40 million people have so far moved from poverty to the middle class. Besides that, Brazil has managed to increase the number of people in the income bracket to 55% of the country’s total population.
A resource and industrial powerhouse
Brazil is a market of excellence. It’s the world’s second largest emerging market from China in terms of GDP and market size. It is the seventh largest economy in the world by nominal GDP, and the fifth largest country by landmass and population. Brazil prides in hosting multinational manufacturers as well as homegrown talent in oil and gas, engineering, construction, capital goods, automotives and aerospace.
Economic liberalization and reforms
Brazil’s financial stability came as a result of the reforms that were established in early 1990s. The reforms opened it to internationals trade. Key sectors of the economy were liberalized by removing government monopolies to enhance competition. In 1994, the Brazilian government came up with the “Real Plan” strategy which was meant to control inflation. The program formed the foundation of structural reforms in Brazil which basically targets inflation. The structural reforms have remained until now and one of the evident results of the reforms is improvement in income distribution.
An upbeat business environment
The economic environment in Brazil can simply be described as buoyant. The economy is open to foreign direct investment. In fact, many of the big companies operating in Brazil are fostered by foreign direct investments. The investors of Brazil benefit from a world-class workforce, efficient financial systems and a supportive investment frameworks
About Zeca Oliveira
Zeca Oliveira is the current BNY Mellon’s country president in Brazil. The Bank of New York Mellon Corporation, BNY Mellon is an American multinational banking and financial services corporation. BNY opened its office in Brazil in the 1990s offering a few banking services. Today, the bank offers a full range of asset management including treasury services, depository receipts, wealth management and asset servicing. The bank recently obtained a license to operate in Banco S.A. Zeca Oliveira expressed his confidence with the new establishment considering the great milestones the bank has achieved over the last decade in Brazil.