Biggest in Latin America
The seventh biggest economy in the world with a Gross Domestic Product (GDP) of USD 2.3 trillion, Brazil is by far the largest economy in Latin America. Indeed, states such as São Paulo alone have an economy bigger than Argentina, Uruguay, Paraguay and Bolivia put together. In fact, were it an independent country, São Paulo would rank among the global top 20 in terms of GDP. A gateway for business in Latin-American countries, the largest port in the continent, Santos, also located the State of São Paulo, is the entrance point for most Latin American imports from all over the world.
Alongside with Argentina, Uruguay, Paraguay and Venezuela, Brazil forms Mercosur, South America’s leading trade bloc that guarantees free trade between its member states and has a regional market of over 250 million people. The country also has been expanding its presence in international financial and commodity markets and is one of the BRICs (Brazil, Russia, India and China). Due to lower labour and production costs in these countries, many companies believe it’s a source of foreign expansion opportunity.
Brazil is a federative republic constituted by the union of 26 states, a Federal District and 5 570 municipalities. Every person in national territory (citizen or foreigner) has rights and duties established by the Brazilian Constitution of 1988.
Brazil represents enormous potential for international companies, but it demands knowledge and effort to overcome its unique challenges such as its complex tax and regulatory system taxes, local laws and cultural differences that vary significantly across the country.
In Brazil, a lot of importance is put on personal relationships in the context business deals, so the best Brazilian PR agencies can explain and interpret these peculiarities, ensuring your brand can achieve success and relevance in the country.
Rich Market of Opportunities
International companies have a lot of opportunities for expansion across a range of different sectors. The country has the largest healthcare and energy market in Latin America. It also has the second largest oil reserves in the region. As an example of this, Petrobras (the semi-public national oil and gas company) plans to invest USD 98 billion by 2019. Shell is the second largest company and has a strong portfolio of investments.
Despite of the economic recession that is now showing signs of improvement, Brazil has the largest middle class in Latin America with consumers prepared to pay more for high quality imported products. Also, the country is the world’s second largest supplier of food and agricultural products – this sector represents one-third of Brazil’s total energy supply through a complex bio-renewables supply chain.