Africa

Details

  • Industry: BRICS
  • Type: Press release
  • Date: 3/25/2013

BRICS

During the Fifth Annual BRICS Summit held in Durban, South Africa, in March 2012 KPMG compiled a series of thought leadership and investment guides for investors interested in BRICS and its interaction with Africa.

The BRICS corridor: Investment in Brazil 

Opportunities and challenges of investing in Brazil
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As the Financial Times has recently stated, Brazil “is one of the fabled fast-growing BRIC economies Brazil, Russia, India and China – that are reshaping the international order. And as the host of the next football World Cup and, in 2016, the Olympic Games, Brazil has confidently arrived on the global stage.”(28 September 2010).
 

Key points:

 

During the recent and most severe global economic crisis in more than six decades, Brazil proved to be a solid strong economy and has been pointed as one of the largest consumer markets in the world as well as a major centre of opportunities for foreign investors.

 

Middle class


The rising middle class, the strong demographic growth, a stable financial environment and both a public and private commitment to infrastructure, and financial investments have laid the foundation for Brazil’s strong economy.

 

Over the past three years, 45 million Brazilians moved into the middle class. And, with their ascent into the new social stratum came a world of consumer opportunity. These new middle class are buying everything from cell phones to refrigerators, they are using the internet more frequently and they are buying homes for the first time in their lives. This rising consumer class is expected to be a driving force to the strength of the consumer markets.

 

Demographic bonus


In addition to a rising middle class, Brazil is expected to benefit from what is being called the “demographic bonus”, which is to say that the current youthful population is expected to mature over the next 20 years.

 

According to leading economists, Cássio Turra and Bernardo Queiroz, of the Federal University of Minas Gerais, Brazil has the potential to grow 2.5 percent per year exclusively as a result of this demographic bonus. The strong consumer economy is expected to be supported with stable economic policies.

 

For the second time in two years, Brazil has been upgraded by the rating agencies. Brazilian Finance Minister, Guido Mantega, has said that this rating reflects the solidity of the Brazilian economy.

 

Investment opportunities


To support this growth, Brazilians in both the public and private sector are aware that massive investments in infrastructure are needed. Other investments include hydroelectric plants, railways, highways and ports.


Download the full report for more information.

 

Contact

Contact
Glenn Ho
Director
Head of the KPMG China Desk in South Africa
Tel: +27 021 408 7332
glenn.ho@kpmg.co.za
Feature image
Anthony Thunstrom
Chief Operating Officer
KPMG Global Africa Project
Tel: +27 011 647 7111
anthony.thunstrom@kpmg.co.za