Why Pyential Investors Should Consider Investing in Brazil

Brazil being the sixth largest economy in the world with the United Kingdom, Italy, and France, followed by Spain, Mexico, and South Korea provides a vast opportunity for investment. The Brazilian economy offers a stable and sustainable growth with statistics proving a growth rate of 5.3% in 2007 and and inflation rate of 3.7%. Higher Brazilian participation in the world trade has increased their growth rate since 2003 as compared to other global imports. The countries sustainable growth is one of the many factors that draw investors to the Brazilian market.

Brazil is also strategically located for all types of investments as it borders most of the South America countries apart from Ecuador and Chile. With more than 900 million potential customers in the consumption market considering North America, Latin America, and Brazil, the country surpassed US$2 trillion PPP as at 2007. Investment profitability has also been impressing in the last few years with a return on investment exceeding the annual mean of 26%. Foreign investments in Brazil are at liberty to send their profits to their native countries while they continue with business. In 2007, Brazil attained 30% of the Foreign Direct Investment proposed for the Latin America that led to a 99% growth rate, very remarkable statistics.

There are so many investment areas one can opt for since Brazil thrives well in almost all sectors of the economy especially the production sector. Brazil is among the largest producer and exporter of agricultural products in the world as well as sugarcane, coffee, and fruit juices. The country is the leading producer of ethanol, producing 17,7 billion liters per year from almost 308 installed production plants.

Big investors are currently on the look out for buying cheap assets in Brazil since the stock market is low by 25% off its highs in 2011 but is anticipated to rise. This has resulted in Brazil currency being at its lowest level as compared to the U.S dollar since 2005. Investment funds are also a catch in the Brazilian market. Among investors taking an interest is Zeca Oliveira, the president of Bridge Trust, who is in charge of resource management and fund management areas. The Bridge Trust Administration Resources signed an agreement with Gradual Investimentos to a partnership. The financial group merged with a total of R $ 6.5 billion in assets under management whose transaction will be subject to the Central Bank’s approval. Zeca Oliveira is optimistic that the association will boost ‘cross-selling’ of products and services while heightening its customer base.