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Overview of the Brazilian economy and investment climate. Investment Promotion Office. Cesar Yu Chief Representative China Representative Office 14 January 2011, Dongguang. World ’ s 5 th largest consumer market in the next decade.

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Overview of the Brazilian economy and investment climate

Investment Promotion Office

Cesar Yu

Chief Representative

China Representative Office

14 January 2011, Dongguang

World’s 5th largest consumer market in the next decade

3rd largest market of cell phones, cosmetics and soft drinks

5th largest market of personal computers and automobiles

World’s 5th largest manufacturer of


World’s 4th largest manufacturer of aircraft and top producer of models seating up to 120 passengers

Home to the world’s 10th largest petroleum reserves

Gdp growth in brazil
GDP Growth in Brazil

Source: The Economist – Developed by Ministry of Finance

Economic growth
Economic Growth

  • History of institutional reforms

  • Investment enhancement

  • Employment generation

  • Driven by domestic demand

  • Social inclusion and income distribution

  • Inflation under control

Financial Crisis

  • Tax alleviation on durable goods maintained household consumption on pre-crisis growth levels

  • Effective counter-crisis fiscal policy at low cost (1.2% of GDP)

  • Credit expansion (state-owned banks)

  • A very powerful Development Bank – BNDES

Arising Middle Class

Source: FGV and IBGE - Developed by Ministry of Finance

Purchasing Power

Source: DIEESE – Developed by Ministry of Finance

Sustainable Growth: consumption and income

Consumer market

Retail sales growth (% on 12 months accumulated)

Income growth

Per-capita income growth by region (average % 2003-08)

Source: Brazilian Institute of Geography and Statitics (IBGE)

Employment Rate

2010 – 2,5 million new

formal jobs created

Source: Ministry of Work and Employment (MTE) - Developed by Ministry of Finance

High Level of International Reserves


US$ 289,5 billion

Source: Brazilian Central Bank

Trade flow
Trade flow

Brazilian Trade Flow – in US$ Billion

  • 2010: Brazilian exports = US$ 201 billion

  • Diversification of trade partners: less vulnerable

Source: Ministry of Development, Industry and Foreign Trade (MDIC)

Brazil fdi inflows us billion
Brazil - FDI inflowsUS$ billion

  • Brazil has became one of the leader recipients of FDI in the last decade, attracting investments to various sectors of the economy.

Source: Brazilian Central Bank

Estimated Investments

  • Growth Acceleration Programme (PAC)

  • Investments of R$959 billion ~ US$ 535 billion (2011-2014)

Research & Development

  • Establishment of Government policies to reach 1,5% of the GDP in R&D in the next 2 years

  • Cenpes = investments of US$800 million/year

  • Focus on hydroelectricity, oil and gas, biofuel, ICT, aerospace and agribusiness

  • Government Action Plan S&T&I = US$ 27 billion for 2007-2010

  • Legislation and financial incentives:

    • Tax deductions

    • Public financing system for innovation (BNDES and FINEP)

    • Non-reimbursable resources

  • R&D Investments(2008)

Source: Ministry of Science and Technology

Workforce to Meet Investors Demands

  • 180 universities

  • 210,000 researchers at universities and private companies

  • 24,719 undergraduate courses in Brazil

    • - 133% growth since 2000

  • 5.08 million students enrolled in undergraduate courses

    • - 88% growth since 2000

  • 150 thousand students enrolled in graduate courses

    • - 58% growth since 2000

  • 50,000 professionals in electrical engineering, computer and telecommunications, physics, among others

Source: CAPES

APEX-BRASIL: FDI Promotion Services

  • Assistance throughout the entire decision making process:

  • Strategic knowledge about markets and industries

  • Tailor-made information

  • Contact with key players

  • Identification and promotion of investment opportunities

  • Organization of prospective missions to Brazil

  • Guidance on key investment location issues

  • National network with federal and state institutions

Your partner to do business in the biggest country of Latin America.

ApexBrasil – China Representative Office

Room 1303-05, China Central Place,

Office Tower I , Beijing,

Tel 10-5969-5333

E-mail : [email protected]