Brazil has become a key ‘jumping-off point’ for global investors as economic power shifts from West to East, along with rising demand for food. With abundant resources and arable land, a population of 200 million and an ever-expanding middle class, Brazil is one of the major geopolitical and economic powers of the 21st century. Investment opportunities in the country will arise as mainstream assets in advanced economies are stuck in a low-inflation environment, which inevitably generates lower returns for investors.
A re-elected Dilma Rousseff has expressed her commitment to reconcile a divided nation. She has no choice; Rousseff’s opponent Aécio Neves won the majority of the votes in the country’s southern states – a region that collectively represents 63 percent of Brazil’s GDP. In order to generate a sense of unity and drive economic growth at a time when the outlook for global growth in 2015 remains opaque, Rousseff needs the support of the business community.
With many Brazilian assets sold down in anticipation of a Rousseff victory, the current attractive valuations combined with an ongoing market adjustment of the Real will entice investors back in and strengthen the country’s position as a lucrative investment destination.
Following the most contentious election in Brazil for a generation, Liquid Investments has published a white paper: ‘Brazil: Victory Spells Opportunity’. The paper examines the economic, political and social prospects for this top six global economy over the next presidential term.
Read the white paper here.