The Brazilian government is actively working to increase investment in the country and attract foreign commercial activity. With a recent reform implemented to reduce social security spending and boost the economy, Brazil, as the largest economy in South America, is striving to overcome high levels of national debt and slow growth to attract more foreign investment.
The pension reform, which was approved in October 2019, is expected to save the economy $194 billion over the next ten years, reducing the budget deficit and national debt. This reduction in debt is crucial in attracting foreign investment, as it signifies a lower risk for investors.
As a result of the pension reform and reduced debt, Brazil’s country risk score decreased significantly, leading to increased investment in the country. Furthermore, the Central Bank of Brazil has cut interest rates to 5.0%, aiming to boost the economy and drive local demand.
Brazil is historically one of the main recipients of foreign direct investment in South America, with diverse trade agreements that provide businesses in the country with opportunities to reach international markets. With the expansion of Brazilian beef exports to Dubai and trade deals with the United Arab Emirates, Brazil is set to take off in 2020 with increased foreign investment and international commerce opportunities.
Investors seeking to enter the Brazilian market should ensure compliance with laws and regulations governing incorporation of companies and foreign investment. Biz Latin Hub offers a suite of legal services, visa processing, commercial representation, and other market entry and back-office solutions to support investment in Brazil. Contact their team of lawyers for professional assistance.
Please note that the information provided is for informative purposes only, and regulations may change. Readers are advised to consult professionals for specific guidance and advice.
