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.
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.
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.
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.
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