Brazil has the eighth largest economy in the world, but recent economic issues that caused the country’s average annual GDP growth rate to drop below 2% has disappointed investors. Despite some economic setbacks, the country is rich in natural resources, is competitive in agriculture production, and it is one of the top food suppliers in the world. In addition to this, Brazil has a population of over 200 million people with a growing middle-class, so the country is poised for strong economic growth.
Brazilian banker and investment expert Igor Cornelsen has three important tips for those who are considering investing in Brazil. His first tip is for investors to connect with the Brazilian people through networking and building relationships. Brazilians like to socialize, and they are willing to give advice to those who are looking to do business in the country. 25% of Brazilians between 18 and 64 years of age are entrepreneurs, so making business connections shouldn’t be difficult.
Next, Igor Cornelsen advises investors to be prepared for Brazilian regulations. Brazil has a large government bureaucracy, high taxes, and complex regulations. He says it’s important for investors to understand these regulations so that they can make informed decisions. It is possible to financially succeed in Brazil if investors understand the regulations they are up against.
Igor Cornelsen’s final piece of advice to investors is they will have to understand Brazil’s foreign currency restrictions. This is important for the non-resident investor because they will have to find a bank that is authorized to work with non-resident investors. Investors also should make sure they are using the right currency rate for the right transaction.