VOL. 12 May ISSUE YEAR 2011
From Editor's Desk
in Vol. 12 - May Issue - Year 2011
Brazil - A Global Market that should not be ignored
It is a requirement that any global player in the industry follow the different markets around the world in order to look for new opportunities. Brazil can certainly not be overlooked and it is not coincidental that Barack Obama visited this country last March. It is Latin America’s giant in every sense of the word - its highly diversified and industrialized economy is the largest in Latin America and the seventh largest globally.
The country has mature manufacturing, mining and agricultural sectors and rapidly expanding technology and service industries. It is also home to the most sophisticated and diversified science, technology and innovation systems in Latin America. The country has an impressive aviation industry, including Embraer, that produces commercial, military and executive aircraft. Brazil is among the fastest growing aviation markets in the world. Having made important economic reforms over the past few years, Brazilians are now reaping the benefits of new-found stability and growth. After 16 years of economic stability and relatively little impact from the global financial crisis, Brazil’s economic fundamentals are strong. Brazil is experiencing rising commodity exports and an overvalued currency, driving up the price of its manufactured exports.
Several challenges will test the vibrancy of Brazil’s economy in the next few years, notably those of improving the country’s dilapidated infrastructure and addressing an overheating economy in which the number of manufactured imports is soaring and exports lagging. International corporations are investing billions in Brazil, effectively securing its place in regional and global supply chains. The country is also becoming a major source of outward investment. Furthermore, with 191 million people, a well-educated middle class and millions of working-class citizens, Brazil’s importance as a consumer market is on a steep, upward swing. To take advantage of the myriad commercial opportunities that Brazil offers, one will need to be aware of key commercial influences, including foreign competition, import tariffs, tax and regulatory systems, labour supply and infrastructure challenges. A sound infrastructure is key to the Brazilian government’s economic expansion in the coming years, with Brazil looking at investments of over US$ 262 billion. And it is certainly not just the 2014 World Cup, the 2016 Olympics, and the federal government infrastructure program that offer a broad range of business opportunities. Global players in the surface preparation industry should therefore attempt to benefit from this promising situation. MFN has had an office in Brazil for many years now, and is conducting workshops and training in this region.
Andrzej Wojtas (Ph.D.), Chief Editor of MFN, E-mail: email@example.com
Author: Andrzej Wojtas