The economic growth of Brazil FACTS & FIGURES June/2011Opportunities TOP 10 reasons toHow to explore the opportunities invest in BRAZILoffered in one of the most importantemerging countries in the world?ORESUND BUSINESS & countries, mainly in Brazil,CONSULTING can support the biggest and the mostyour company to explore the important country in theseveral opportunities to increase South continent. See some ofthe market share of your the good reasons to startbusiness within South America thinking about it now: 6. Wages and salaries are rising in “reais” and1. Brazil is now a smooth-running democracy, a exploding in the equivalent of dollars, so force in agribusiness, finance, manufacturing Brazilian consumers have more purchasing and worthy of hosting the 2014 World Cup power than ever imagined before. and 2016 summer Olympics. 7. With the government having conquered the2. In 2010, Brazil exported $197 billion worth of monetary instability and inflation of the 1990s, products -- mostly meats, processed foods, banks are willing to extend long-term soybeans, aircraft, electrical goods, computers mortgages, car loans and credit cards. and computer parts, plus the standbys of coffee and iron ore. 8. Brazil is developing a financial-and-investing culture it never had before. Eight years ago,3. Presents an excellent performance of stocks, the country had only 80,000 individual stock many of which have doubled and tripled investors, now there are more than 630,000. since the world’s markets pulled themselves out of the quicksand two years ago. 9. The Brazilian finance system is one of the most and best regulated economic sectors in4. Has elected Dilma Rousseff as the country’s the world, where the “Conselho Monetário new president. She is the hand-picked Nacional” (CMN) and “Banco Central” (BC) successor to outgoing two-term president work together in order define governance Luiz Inácio Lula da Silva, who left office with rules and mitigate eventual risks. 80% approval rating. 10. The BNDES will invest Tri US$ 2,0 between5. Brazil is very proud of its robust currency, the 2011 and 2014, which represents 23% of GDP, Real. against the current 19%.
Macroeconomic OutlookFrom a less dynamic economy, with growth The results coming from private and foreign directrates below the world average, Brazil has joined investment flows to emerging countries, which hasthe group of countries that lead the world intensified since 2004, are shown on world GDPeconomic growth - and will continue to lead it in statistics. Brazil reached the average of 4,5% inthe coming years. economy growth from 2007 to 2010, even considering the sensitive investment flowBetween 2010 and 2020, the expectation is that reduction faced in 2009.Brazil will be the third country in the ranking ofthe biggest contributions to global growth. The When the crisis occurred, Federal GovernmentBrazilian economic success comes along, promptly acted. The measures approved weredifferently from what happened in the past, quite different from traditional recipe used by thewith social inclusion and reduction of social and country in past experiences. The Governmentregional disparities. implemented a series of counter-cyclical
fiscal and monetary measures in order tostimulate the economy, reversing privatesector expectations and reestablishing overallconfidence.Brazil was one of the last countries to sufferthe crisis effects and one of the first to recoverfrom it.In 2010, Brazil realized an extraordinarystructure investment increasing, which willimpact positively on the continuous growthof the next periods.Economy ForecastFor the coming years, it is expected large more than R$ 500 billion between 2007 and 2010 ininvestments in infrastructure, such as transportation, energy, sanitation, housing and waterconstruction, telecommunications, sanitation resources sectors.and oil exploration and refining. TheBrazilian Government considers the The PAC-2, initiated in 2011, will continue to boostexpansion of infrastructure investment as a investment in order to reach 24% of GDP by 2014.fundamental condition for sustainable The government encourages investments by offeringdevelopment. incentives for all regions and segments, providing aThus, it has launched the Growth balanced growth for the 190 million inhabitants.Acceleration Program (PAC), which invested Macroeconomic Forecast 2011 - 2016 2009 2010 2011* 2012* 2013* 2014* 2015* 2016* GDP % -0,2 7,6 4,3 4,7 4,8 5,2 4,2 4,5 Nominal 8,8 10,8 12,5 11,3 10,3 9,8 9,0 8,5 rate (Selic) % CPI (IPCA) % 4,3 5,9 6,3 4,5 4,5 4,5 4,3 4,0 Unemployment 8,1 6,7 6,4 6,1 6,1 5,9 5,7 5,7 rate % FX – Year end 1,75 1,70 1,60 1,70 1,74 1,76 1,81 1,84 (R$ / US$) Exports 154,1 196,6 257,4 300,0 328,4 352,5 384,0 416,5 (US$ Bn) Imports 130,3 179,8 233,9 279,5 302,3 329,9 360,4 392,6 (US$ Bn) Source: Banco Central *Banco Brasdesco
10 important cities that push the economy in Brazil 9 8 10 7 6 5 4 3 2 1 city population ( millions )1 Porto Alegre 1,4 Two Mercosul countries, Argentina and Uruguay, border this attractive city.2 Curitiba 1,7 “Curitiba is the best place to live in Brazil” Reader’s Digest3 Belo Horizonte 2,3 A mixture of contemporary and classical architecture surrounded by mountains.4 São Paulo 11,2 Business center of Latin America and also known for its diversity culture.5 Rio de Janeiro 6.3 A global city and an attractive, wonderful place to live work and invest.6 Brasilia 2,0 The capital of Brazil and a city of striking contemporary appearance7 Salvador 2,6 Brazils capital of happiness due to its easygoing population8 Recife 1,5 The major port on the Atlantic Ocean and it is known as the “Brazilian Venice”9 Fortaleza 2,4 In this beautiful city, the economy arises from its diversified commerce and tourism10 Manaus 1,7 A free economic zone, with interesting tax incentives that attracts several companies
Services which will contain all the strategic goalsHow can ORESUND help your expected by the company, a real schedule and comprehensive rules.company to succeed inBrazilian business growth? Since our project group is create based on company needs, every single member is selected according to requirements definedThe support service during the Start-Up process for the specific role. Which means that, forof foreign companies in Brazil, is one of the each process phase of the project, thespecial projects developed by ORESUND and participants will be aggregating value.selected partners. The figure below demonstrates the threeSince the Government is being committed with different phases of a Start-Up project of aseveral accomplishments internally and market company, which expectation is toexternally, several changes have been made in enable the staff to totally manage theorder to provide sustainable and assertive rules. business by themselves in the third momentThis means that Tax legislation has been of the project. It is as typical marketchanging continuously and can motivate from company that will consider the productionthe improvement perspective, but can “afraid” plant on a second phase.some investors who are interested in increasingtheir companies’ profits by exploring the This process ensures that the company willBrazilian Market. be settled down following the local legislation and all activities areas will beThe Start-Up process is based on strategic plan created, prepared, trained and manageddeveloped together with the company according to the company business rulesheadquarters and a business strategic group, and strategies. Subsequently, ORESUND can keep the services support according to the company needs. Marketing Legal Company ORESUND Company ORESUND Logistic Staff Structure Management Support
To be confident and offer services with quality The full coordination of this integration isand efficiency, ORESUND counts on selected made by ORESUND together with thepartners, which will contribute with their Company Start-Up.expertise in each activity defined as below. Services provided and coordinated by ORESUND and partnerships during Start-Up process Accounting Strategy & Marketing Administration Supply Legal & Tax & HR Compliance & Publicity & Finance Chain Controlling Business Plan Legal Radar Office Daily Routine CRM Recruitment and Strategy Corporate Law Market Settling Up selection Schedule Commercial Law Competitors Gen. admin. Book Closing Sourcing Investment Tax Law IT solutions and Compensation Survey Labor Law Customers management Risk Purchasing and benefits Benchmarking Relationship Management Contract Banking Import Industrial BSC Management Sales Team Reporting Export relations and Performance Cash personnel Business Process Tax legislation Management Logistics monitoring Product & Health and Procedures Branding Credit & Risk Storage safety Management Audit Communication Training and Financing development Promotion Internal Campaigns communication Fairs/Exposition • Keep focus on business strategies What are the benefits for • Speed up the start-up process the Company Start-up? • Mitigate risks • Delegate administrative and operational activities smoothly and assertivelyContact:Adriana Gurgeladriana.email@example.com F. 55 11 7867 4866 www.oresund.com.br 55 11 3876 8886 São Paulo – Brazil