While China gets the headlines, Brazil is the best-positioned of the BRIC countries for long-term growth, for several reasons:
First, Brazil is blessed with diverse natural resources, and increasingly higher-value products, that are becoming absolutely critical to the world’s developed and developing economies:
- Brazil has become the breadbasket of a rapidly increasing world population: It’s the world’s largest producer of soybeans, orange juice, beef, chicken, and many other foodstuffs.
- Brazil is also the world’s #1 or #2 top exporter of commodities such as iron ore, bauxite and manganese, in ever-increasing demand in the world’s other high-growth markets.
- Thanks to the largest world oil find of the last thirty years, Brazil is on track to become one of the world’s top five oil producers (not to mention its existing global leadership in ethanol).
- And it’s not just commodities — the next time you ride in a small commercial or business jet, check the make — it’s quite likely to be a Brazilian-designed and manufactured Embraer.
Second, Brazil is the best-positioned of the BRICs in political and social terms:
- Like India, and unlike China or Russia, Brazil is a stable democracy. Democracies are more likely to support sustained economic growth than corrupt dictatorships.
- Despite its extraordinary racial diversity, Brazil is a remarkably united country, with only one language, no significant religious or ethnic tensions, and a very strong sense of national identity. In this way also it is unique among the BRICs.
- Brazil has no significant enemies, excellent relations with the US, China and the EU, a modest defense budget, and no military ambitions that would detract from its core focus on rapid economic and social development.
- Brazil’s population of about 200 million is large enough to create a large internal market, but not so large as to create the almost insurmountable difficulty of achieving universal economic prosperity faced by China and India with their billion plus populations.
- Brazil has been making rapid progress in raising its standard of living, expanding its middle class by 29 million over the last seven years to reach 100 million people, fully half of the population. These newly affluent consumers will drive substantial internal economic growth to match the continuing export boom.
Driven by this remarkable set of advantages, Brazil is growing at a remarkable rate and recently passed Italy to become the world’s seventh largest economy. According to a recent article in the Economist, it will soon pass Britain and France to break into the top five.
- It’s warm all year round in the northeast of Brazil increasing rental opportunities and yields.
- Some areas in the North East of Brazil have seen capital appreciation of over 20% per year even more in hotspot areas.
- Currency exceptionally favorable at the moment making it cheap for foreigners to invest / buy property, the currency over the last few years is strengthening year on year.
- President Lula has brought huge hope and improvement to Brazil, Inflation is at an all time low
- Foreign investment is encouraged, you own 100% of land and property (there are exceptions, but we will advise you of this)
- Cost of living can be as low as 30% of the cost in the UK/Europe
- Brazil is self sufficient in Oil and is finding more and more oil fields ready for exploration.
- Beautiful Country with fantastic scenery and beaches
- Some economists say Brazil will be one of the future economic leaders along with Russia, India, China (BRIC’s).
- Brazilian people are always friendly and cheerful and inviting. Smiles go a long way. Cities in Brazil are vibrant and exciting with carnivals and music
- Brazil is considered a low risk in respect of War, Terrorism, or Hurricanes
Brazil is quickly emerging as one of the key drivers of emerging-market power and by some measures boasts the healthiest of the BRIC economies. Unlike China, it has so far not had a significant problem — yet — with asset bubbles, and policy makers are determined to keep it that way. India has more serious inflation woes, and Russia’s economic performance remains heavily dependent on energy exports to such key slowing markets as eastern and central Europe.
Globe and Mail, 09.06.2010 “Why Brazil Stands Out”
THE release of last year’s economic figures on March 3rd was cue for much crowing in Brazil. The economy grew by a blistering 7.5%, a rate unmatched since 1986. Since the currency started 2010 strong and ended it stronger, a GDP of 3.675 trillion reais converted at the year’s average exchange rate into $2.089 trillion. This meant that Brazil overtook Italy to rank as the world’s seventh-biggest economy (see chart). And income per head in Brazil has surpassed that in Mexico.
The Economist, 15.08.2011, “Measuring Brazil’s Economy”
Brazil shows a different way of striking a balance between farming and the environment. The country is accused of promoting agriculture by razing the Amazon forest. And it is true that there has been too much destructive farming there. But most of the revolution of the past 40 years has taken place in the cerrado, hundreds of miles away. Norman Borlaug, who is often called the father of the Green Revolution, said the best way to save the world’s imperilled ecosystems would be to grow so much food elsewhere that nobody would need to touch the natural wonders. Brazil shows that can be done.
It also shows that change will not come about by itself. Four decades ago, the country faced a farm crisis and responded with decisive boldness. The world is facing a slow-motion food crisis now. It should learn from Brazil.
The Economist, 26.09.2010 “Brazil’s agricultural miracle: how to feed the world”
…You cannot spend a day in Brazil without sensing the economic miracles happening here – first quarter growth touched 9 per cent and the helicopter pads atop the skyscrapers of Sao Paulo are buzzing with air traffic again – or hearing of the achievements of its President, Luiz Inácio Lula da Silva, recently named the world’s most influential leader by Time Magazine, in raising the country’s profile on the world stage and lifting much of the population out of poverty…
…Ms Rousseff will inherit a country bursting with fruit. As if it wasn’t enough that Brazil was already to host the next soccer World Cup, Rio de Janeiro last year barged aside Chicago to win selection as host city to the 2016 Summer Olympics. This as Brazil rushes to exploit vast reserves of oil off its shoreline close to Rio. Rather than giving them pause, the crisis afflicting the deep-sea drilling industry in the Gulf of Mexico is if anything spurring Brazil to move more quickly to increase production. Oil revenues now stand at 12 per cent of the national GDP and may rise to as much as 20 per cent.
The Independent, 09.07.2010 “On top of the World – Why Brazil is Booming”