How do you assess the outlook for your economy?
Over the next few years, the Brazilian economy will face the positive impact of several drivers: the 2014 FIFA World Cup, the 2016 Olympic Games and a burgeoning, consuming middle class. Certain sectors will therefore see a large uptick in demand for goods and services. Good opportunities exist in education, construction & real estate, healthcare and transportation among others.
Despite recent slow growth, these factors lead us to believe that Brazil offers an exciting window of opportunities to investors over the next five years, although the most important fact is that the economy has been changing in order to keep the growth sustainable.
What are the top three strengths of your economy as a potential target for investors?
The Brazilian financial market is stable, and the economy has been closely monitored. This has resulted in economic indicators that give room for growth, such as stable inflation rates and low unemployment rates. Beside this there are a lot of new consumers coming to the market - more than 30 million people joined the middle classes over the past decade. Another strength is the changes government is making as regards the deregulation of key sectors such as transportation and airports ahead of the FIFA World Cup and Olympic Games.
What should business leaders be aware of when investing in your country?
Brazil is a large country – the largest in the southern hemisphere and the fifth largest in the world – so it is impossible to do business here without taking into account the regional differences. Tax and labour legislation is unique and very complex.
What does your firm specialise in?
We specialise in providing audit, tax and advisory services to companies with strong growth potential, including family-owned businesses and private equity and venture capital units.
Paolo Dortas is Managing Partner, Grant Thornton Brazil.