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Brazil Economic, cultural and political factors that contribute towards attracting foreign investment into the country.

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Presentation on theme: "Brazil Economic, cultural and political factors that contribute towards attracting foreign investment into the country."— Presentation transcript:

1 Brazil Economic, cultural and political factors that contribute towards attracting foreign investment into the country

2 Surface: 8.5 million km 2 Population: 191 million of people (2010) Labor Force: 100 million of people (2010) GDP 2010: US$ 2,023 Trillion (7,5% growth over 2009) Brazil

3 Social Respect: Brazil is a pacific and multi-racial nation Immigrants and religions are respected Non-conflict interactions, non-use of force in international law, peace promoter among nations

4 Brazil A safe place for investment: An economy open to the world market Stable currency Strong fiscal adjustment Solid institutions Democratic government Growing domestic market Sustained economic growth Trade-Flow of US$ 383 billion in 2010 (growth of 36,1% over 2009)

5 Brazil BRAZIL IN THE WORLD PRODUCTSPRODUCTIONEXPORTS SUGAR1th COFFEE1th ORANGE JUICE1th ETHANOL2th1th BEEF2th1th TOBACCO2th1th IRON ORE2th SOY BEANS2th LEATHER AND FUR2th4th CHICKEN MEAT3th1th SHOES3th5th SOY RESIDUES4th2nd MAIZE4th3rd SOYBEAN OIL4th2nd AIRPLANES4th PORK MEAT4th COTTON5th CARS5th12th ALLUMINIUM6th8th STEEL9th10th

6 Brazil Foreign Direct Investment Inflow of US$ 52,6 billion in 2010

7 Inward FDI 2001–2010 (US$ million) YearUS$ million 200121,04 200218,77 200312,9 200420,26 200521,52 200622,23 200733,7 200843,88 200930,44 201052,6

8 FDI Resource Application - Main Sectors 2009 ● 46,13% Services Sector ● 39,17% I ndustry ● 14,70% Agriculture and Mineral Extraction

9 Brazil Brazil has one of the most modern and advanced banking systems in the world

10 BNDES – Brazilian Development Bank The Brazilian Development Bank (BNDES) is the main financing agent for development in Brazil. Since its foundation, in 1952, the BNDES has played a fundamental role in stimulating the expansion of industry and infrastructure in the country. Its operations include support for exports, technological innovation, sustainable socio- environmental development and the modernization of public administration. The Bank offers several financial support mechanisms to Brazilian companies of all sizes as well as public administration entities, enabling investments in all economic sectors.

11 BNDES – Brazilian Development Bank The Evolution of the BNDES’ Disbursements R$ billion In 2010, the total disbursements amounted to R$ 168,4 billion (approximately USD 104 billion)

12 Brazil Investment Opportunities

13 Ports Sector Brazil has over 8,500 kilometers of coastline The Brazilian ports system consists of 37 public ports, including both seaports and river ports. There are also 42 private terminals and 3 port complexes operated by the private sector on a concession basis. The ports sector, in 2009 alone, handled US$ 215 billion worth of freight, comprised of US$ 126 billion in exports and US$ 89 billion in imports: 95% of the Country trade In 2010, Brazil’s ports and terminals handled a total of 833.8 million tonnes of freight, an increase of 72% since 2000

14 Shipbuilding There are 6.2 million DWT (deadweight tons) of construction in progress in 269 projects in Brazil. Brazil appears in the international shipbuilding statistics with annual shipments of more than 100 million DWT. Brazil stands out in the construction of oil tankers, oil platforms and support vessels. The demand for vessels and platforms to meet the demand of Petrobras is estimated at: 200 support vessels, 40 production platforms and 30 oil tankers to be employed on transportation between platforms and terminals on the coast.

15 Growth Acceleration Program (PAC) The “Growth Acceleration Program” (PAC) was implanted by the Federal Government in 2007. The PAC 1 investments reached US$ 373 billion from 2007 to 2010. The PAC allies investment in infrastructure to economic measures, in order to accelerate growth. Sectors include transportation, energy, sanitation, housing and water resources. The second phase of PAC (PAC 2) was launched in March 2010, with estimated investments of US$ 542,6 billion for the period from 2011 to 2014.

16 Biofuels Brazil is the world’s largest exporter and second largest producer of ethanol. The country has invested in the development of biofuels during the last 40 years. Today, 20% of the Brazilian Energy Mix is based on sugarcane, both through the use of sugarcane ethanol and through the generation of electricity from biomass. The recent development of flex-fuel motors, widely used in Brazil, has greatly enhanced possibilities for the adoption of ethanol as an alternative fuel – replacing fossil fuels, at a very competitive cost, or working in conjunction with them.

17 Oil & Gas The Oil & Gas (O&G) industry in Brazil will top US$ 320 billion in investments by 2020; The recent findings in the pre-salt layer have spurred new investments in the Brazilian O&G industry; The combination of vast and unexplored potential resources of oil and natural gas, and a favorable regulatory structure, currently makes Brazil one of the world´s most attractive oil regions. Industry Numbers Supplier´s Revenue reached US$ 4 billion in 2008 Exploration and Production Forecast (2009-2013): US$ 131 billion 38 companies in the Exploration & Production sector (main worldwide players) 200 subsea product and services companies 11% of Brazil´s GDP75.000 industry employees

18 Brazil World Cup 2014 Rio 2016 Olympics Investment needed for the 12 Brazilian Cities that will host the World Cup games is estimated in US$ 11,3 billion. The project for the Rio 2016 Olympics is estimated in US$ 15,8 billion. The Brazilian Development Bank (BNDES) estimates that infrastructure projects in Brazil will receive US$ 155 billion between 2010 and 2013.

19 Brazil World Cup 2014 and Rio 2016 Olympics The events will require investment in transport (ports and airports), urban mobility (subways, trains, corridors), hospitality, tourism and personal care About 10% of the investments will be devoted to IT, either directly in transmission systems, data and images, and indirectly, in transportation and public safety.

20 Brazil Rio 2016 Olympics and World Cup 2014 Main Opportunities:  Investment in tourism;  Infrastructure, logistics, environmental sanitation, energy;  Commercial buildings – shopping malls, warehouses for logistics;  Urban transportation;  Telecommunications  Ports, Airports;  Real Estate.

21 Brazil www.cbic.org.br Phone: (61) 3327-1013 Fax: (61) 3327-1393 CBIC – Brazilian Chamber of Construction Industry

22 Real Estate and Touristic Association for the Development of the Northeast Phone: 55 82 3327.3465 site: www.aditnordeste.org.br e-mail: presidente@aditnordeste.org.br

23 Brazil’s Foreign Trade Brazil

24 Brazil’s Foreign Trade 2010 Brazil  Exports: US$ 201 billion  Imports: US$ 181 billion  Trade-Flow: US$ 383 billion  Trade Surplus: US$ 252 billion between 2004-2010

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26 Argentina Brazil Paraguay Uruguay Venezuela MERCOSUR

27 Brazil - Greece BILATERAL COMMERCE

28 US$ million FOB Year200620072008 20092010 EXPORTS 247.5370.2332.1 202,80175,14 IMPORTS 59,2041,2066,9034,9067,81 TRADE BALANCE 188,30329,00265,20167,90107,33 TRADE VOLUME 306,69441,38398,88237,77242,96 Bilateral Trade: Brazil - Greece

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30 Brazil The Investment Promotion and Technology Transfer System for Companies (SIPRI) aims at attracting foreign direct investment to Brazil and at establishing partnership between Non-Brazilian and Brazilian companies to make possible the transfer of new technologies to Brazil.


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