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20 Reasons to Invest in Brazil – Part 1

July 31 2014

Following the positive news being publicised about Brazil recently, we at Invest in Brazil have decided to give readers a short guide as to why Brazil is the perfect place to get involved with our 5 part Blog on ’20 reasons to invest in Brazil’…

1)      Employment is on the up

Over 67% of people in Brazil aged 15 to 64 now have paid jobs encouraged by an unemployment reduction from an average of 8.65% in 2001 to 4.9% in April 2014 (source The Brazilian Institute of Geography and Statistics, or IBGE). Apart from the increase in employment partially due to the economic success of the 2014 World Cup, industries across Brazil continue to grow attributing to growing market trends (such as a rise in the middle class) growth of e-commerce and the development of small and medium enterprises (SMEs)

You only have to look in and around the Joao Pessoa area in the north east region of Brazil to see new industries booming. With new shopping centre complexes together with retail parks and the huge Fiat manufacturing plant close by, this area alone is expecting to create over 7,500 new jobs initially and is expected to rise to 20,000 over time.

2)      A dramatic rise in Tourism boosted by world sporting events

Brazil’s tourism industry has seen a steady growth rate since 2000. The positive effect of the recent World Cup saw an estimated 3.7 million visitors travel through Brazil’s states, 600,000 of those internationally. The positive effects of Travel and tourism on the Brazilian economy will see a 5.2% rise in the country’s GDP in 2014 according to World Travel and Tourism Council’s (WTTC) Brazil report 2014.

With the north east region being seen as the holiday destination of Brazilians this area is seeing the greatest tourist movements. Trip advisor recently stated that Joao Pessoa the capital city of the state of Paraiba was the 4th best new destination on the rise in 2013 in the whole of South America.

3)      Fantastic year round sunshine

With the seasons reversed, winter in the UK is the summer season for Brazil. The UK as well Europe have been looking for some time now at Brazil as an alternative destination and with temperatures averaging 26-30 degrees all year round it’s not surprising. Apart from the sun, the holiday region of north east Brazil offers so much more whether it’s walking on the beautiful beaches or swimming in crystal clear waters or the vibrant nightlife including a range of restaurants to suit all.

4)      An Increasing Middle Class

The most dramatic growth in Brazil’s consumer market this decade will be determined by the countries emergent middle class accounting for 85% of incremental spending between 2010 and 2020. This decade, some 5.3 million households will rise from the ‘restricted’ to the emergent middle class segment making up 37% of households, increasing consumer behaviour and the need for luxury homes. With prices at an all-time high in the south of Brazil it’s the north east that is expected to see the largest growth for new housing making it the perfect time to invest.

Click here for Reasons to Invest Part 2, Reasons to Invest Part 3 and Reasons to Invest Part 4   

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