Brazil is the largest economic power in Latin America and one of the most important in the world. The investment possibilities offered by this country are wide and highly profitable. Beyond the challenges of any investment project, Brazil attracts a growing volume of foreign capital thanks to the strength and diversification of its economy. If you still have doubts about investing in Brazil, we will go into detail about some reasons why doing business with the South American giant is a good bet.
One of the largest countries in the world
It is the fifth largest country in the world and the largest in Latin America, with almost 210 million inhabitants according to data published by the World Bank. This means that entering Brazil is a great development opportunity for companies, since they have a high volume of potential customers.
Growing middle class
To complete previous data, it is necessary to add that during the last 4 years about 24 million people entered the middle class in Brazil due to the improvement of income, fostering a wider and more stable consumer market. The consumption boom also is favored by its largely young population: half of Brazilians are under 25 years old.
One of the major economies
Brazil ended 2018 with a gross domestic product (GDP) of 1.869 billion dollars, being considered the 8th world economy and the 1st economy of Latin America. In addition, in the study published by Goldman Sachs, it was identified as one of the countries with the greatest growth potential together with Russia, India and China. This companies prediction was fulfilled, having obtained positive GDP growth, some years over 5%, with the exception of 2009 and 2015 according to World Bank data.
This information indicates the growing importance of this country for international business.
One of the main foreign investment destinations
Brazil has become one of the main recipients of foreign direct investment (FDI), acquiring special relevance in the 2000s when capital inflows increased considerably in this country. Currently, it continues to receive a large part of the investments that are made, thanks to the profitability it offers and the stability of the country.
One of the main investors in renewable energy
Brazil occupies the seventh place in the world in investment in renewable energy, which highlights the importance of this energy for the country. In this sense, it has become one of the world’s leading countries in solar potential, promoting photovoltaic installations within its borders. At present, its capacity is twice the average capacity of Germany, one of the world leaders in the use of this energy.
It has also strongly opted for wind energy, and is rated the 10th country in the world in this energy according to the world energy ranking and having the largest capacity factor for wind power in the world.
Brazil has developed a 2030 National Energy Plan in which renewable energy stands out as alternatives to meet the growing demand for electric energy, increasing its photovoltaic and wind capacities, and improving regulation in this regard.
All these data show the attractiveness of Brazil to invest, especially in the field of renewable energies. And this is where SER Energia comes into play, a local partner that helps foreign companies get the most out of their investment.
