The slides will give you a holistic view of Brazil and about its business strategy along with business environment.

1. Business Environment
of BRAZIL

2. MAP OF BRAZIL

3.  The word "Brazil" comes from brazil wood, a tree that once grew
plentifully along the Brazilian coast.
 Brazil, officially the Federative Republic of Brazil, is the largest
country in both South America and the Latin American region. It is
the world's fifth largest country, both by geographical area and by
population.
 Capital: Brasília
 Dialling code: +55
 Currency: Brazilian real
 President: Dilma Rousseff
 Official language: Portuguese
 Life expectancy : 74
Over All Idea about the Country

4. Other Data of Brazil
 Currency : Brazilian real (BRL, R$)
 Population Total : 200.4 Million
 Fiscal year : Calendar year
 Trade organisations: Unasul, WTO, Mercosur, G-20 and others
 GDP : $ 2.246 Trillion (2013 East) (Nominal), $2,309 trillion (PPP)
 GDP rank : 7 th (Nominal), 7 th (PPP)
 GDP growth :2.3% (2013 est.)
 GDP per capita: $12,789 (2013) (nominal), $11,845 (2011) (PPP; 74th)
 GDP by sector: Agriculture 5.5 %,Industry : 27.5%,Services: 67%,
 Inflation (CPI): 6.52 % (2014)
 Unemployment : 4.3% (December 2013)

5. Economic Indicators
1. GDP and GDP Growth rate 2. Inflation
3. Unemployment
4. Export-Import5. Current account balance
6. FDI

6.  Public Debt : 54.9 %
 Revenues :$911.4 billion
 Expenses : $ 846.6 Billion
 Credit Rating : Standard &
Poor (BBB+), Fitch : BBB
Outlook: Stable (Fitch
Ratings Inc. is a jointly
owned subsidiary of Hearst
Corporation and FIMALAC
SA.)
 Foreign reserves : $377.5
billion
(Main data source :
CIA World Fact Book)
Public finances
Brazil -47,273,101,647 -52,480,127,065 -54,246,393,412 -81,062,946,972

7.  Brazil has the seventh largest economy by nominal GDP in the world, and
seventh largest by purchasing power parity. The Brazilian economy is
characterized by moderately free markets and an inward-oriented
economy.
 Brazil’s economy is the largest of Latin America and the second largest in
the western hemisphere.
 From 2000 up to 2012, Brazil was one of the fastest-growing major
economies in the world, with an average annual GDP growth rate of over
5%.
 with its economy in 2012 surpassing that of the United Kingdom, making
Brazil the world's sixth largest economy with its economy in 2012
surpassing that of the United Kingdom, making Brazil the world's sixth
largest economy.
Economy of Brazil

8.  Brazil's economy growth has however
decelerated in 2013 and had almost no
liquid growth throughout 2014, and the
country's economy is expected to grow
by only 1.8% in 2015.
 Currently, with a population of over 190
million and abundant natural resources,
Brazil is one of the ten largest markets in
the world, producing tens of millions of
tons of steel, 26 million tons of cement,
3.5 million television sets, and 3 million
refrigerators.
Economy of Brazil

9.  Main products : Coffee, soybeans, wheat, rice, corn, sugarcane,
cocoa, citrus, beef. Agriculture growth rate: 9.2%, Labor force : 15%
of total labor force, GDP of sector : 3.5% of total GDP
 Main industries: Automobile industry, petrochemicals, machinery,
electronics, cement and construction, aircraft, textiles, food and
beverages, mining, consumer durables, tourism. Industrial growth
rate: 8.8%, Labor force : 21% of total labor force, GDP of sector :
29.7% of total GDP
Economy cont…

10.  Main industries are textiles, shoes, chemicals,
cement, lumber, iron ore, tin, steel, aircraft,
motor vehicles and parts, other machinery and
equipment.
 Ease of doing Business: 130th (2013)
 Exports : $ 256 billion (2012)
 Export goods: Transport Equipment, iron ore,
soybeans, footwear, coffee, autos.
 Main export partners : China (17.0) USA(11.1)
Argentina (7.4) Germany (6.4) South Korea (4.1)
 Gross external debt: 397.5 billion (31 December
2011 est.)
Main Industries & cont……

11.  Exports are defined as movable goods produced within the
boundaries of one country, which are traded with another country.
 The sale of these goods generates foreign currency earnings in the
country that produces them and boosts its economic growth.
 Brazil’s economy grew meagrely in Q3 2014 and more recent data
suggest that the economy is still struggling.
 Retail sales recorded the largest contraction on record in
December and economic activity hit a six-month low.
 Meanwhile, on top of the challenge of boosting the ailing
economy, the government is under increasing pressure in Congress
over the Petrobras scandal.
Export of Brazil

12. 2009 2010 2011 2012 2013
Exports
(USD
billion)
153.0 201.9 256.0 242.6 242.0
Brazil - Exports Data
Exports in Brazil decreased to 13704.04
USD Million in January of 2015 from
17491 USD Million in December of 2014.
Exports in Brazil averaged 4205.02 USD
Million from 1954 until 2015, reaching an
all time high of 26158.51 USD Million in
August of 2011 and a record low of 75.06
USD Million in January of 1965.

13.  Top 5 Products imported by Brazil: Refined Petroleum (7.3%), Crude
Petroleum (5.7%), Cars (4.3%), Vehicle Parts (3.1%), and Petroleum
Gas (2.7%)
 Top 5 Import origins of Brazil : China (15%), United States (14%),
Argentina (7.4%), Germany (6.6%), and South Korea (4.6%)
 Brazil is ranked 56 with an Economic Complexity Index (ECI) of
0.315644 The top ten Imports of Brazil are:
 Crude oil: 6.2%, Automotives : 5,3%, Liquid oils: 3,5%, Autoparts :
2,8%, Drugs and medicine: 2,6%, Naphtha: 2,1%, Electronic
components: 1,9%, Bituminous coal: 1,9%, Reception and
transmission parts: 1,6%, Potassium chloride: 1,5%
Import of Brazil
2009 2010 2011 2012 2013
Imports (USD billion) 127.7 181.8 226.2 223.2 239.6

14.  Before starting the major agendas of government considered the
facts and elements of the country that are:
Major Agenda of Government

15.  Sustainable urban transport emerges as a priority on Brazil’s
political agenda.
 Brazil will be able to, by 2050, consolidate as the world's 4th
largest economy while being able to offer good and sustainable
living conditions to its 260 million people.
 Funding for infrastructure supporting technology research is also
on the government agenda.
 The Brazilian government will also continue its educational,
innovation and entrepreneurship programs focused on science,
technology and innovation.
 Brazilian government promises major broadband investment.
Major Agenda of Government
Cont……

16.  Brazil is removing the last vestiges of tax cuts and government
spending aimed at bolstering the economy as officials work to
correct the fiscal slippage of the last few years, Finance Minister
Joaquim Levy told investors on Wednesday.
 "We are just taking these anti-cyclical measures away, and this will
put us on better footing," Levy said in his first public address to
investors in the United States.
 "I'm not pretending that you should not be worried about the fiscal
situation," Levy said. "I'm confident that we should get the house
in order. We will get back to the path of growth."
Brazil's Levy tells investors fiscal
adjustment to correct 'slippage'

17.  One of Levy's first challenges will be to convince lawmakers to pass
controversial legislation to cut unemployment and pension
benefits.
 Levy has already raised taxes and limited public expenditures to
plug the overall budget deficit that doubled last year to 6.7 percent
of GDP.
 A series of tax breaks and expenditures cost the government 104
billion reais in revenue, or about 2 percent of GDP last year, Levy
said.
 Levy, a fiscal conservative who took office in January,
acknowledged a "slippage" in Brazil's fiscal results in recent years,
but said the government was going to correct them.
Cont…..

18.  Brazil’s oil industry : Pitfalls at Petrobras
 Anti-poverty programmes: Helping the poorest of the poor
 Brazil’s economy : Rough weather ahead
 GDP expands in Q3, Brazil exits technical recession
 Brazil’s economy grew meagrely in Q3 2014 and more recent data
suggest that the economy is still struggling.
 Brazil’s coffee exports registered an increase of 9.9 % in volume
during the FY 2013-2014 but declined by 11.6 % in revenues.
Latest Economic Trends

19.  With a weak economic panorama in which the only indicator
bringing good news is the unemployment level, which continues to
register under 5%, closing forecasts for 2014 and 2015 are still being
revised downwards. The level of growth this year is expected to be
0.2% and will not reach 1% in 2015; the trade balance and current
account are still suffering the effects of an economy that has been
underpinned by domestic consumption and has been damaged by a
stagnated external sector. For its part, the industrial sector is still
failing to respond to the stimuli applied by the government.
Cont….

20.  Brazil also is struggling to keep inflation from getting out of hand. A
price-index used by the central bank for monetary policy stubbornly has
remained around 6%, within the bank's 2.5%-to-6.5% tolerance range but
above the official 4.5% target. That means interest rates are high, after
rising to 10% from 7.25% last year, and likely getting closer to 11% this year.
 Consumer and retail businesses in Brazil can anticipate a promising
future. Employment rates and consumer groups are growing, while
political risk, economic uncertainty and inflation continue to stabilize.
Overall, the retail market grew by 15.7% in 2009; slightly over the 14%
forecast growth. The segments presenting the highest growth were
automobiles, at a record 32%, furniture and domestic appliances (25%),
clothing and shoes (16%), tobacco and beverages (15.5%) and
pharmaceutical and cosmetic items (15%).
Latest Business Trends

21.  Continued consolidation
 Latin American hub
 Base for manufacturing
 Robust economic growth
 Large domestic market
 Impact of social media trends
 The potential of the “unbanked”
 Greater credit card penetration
 Emphasis on being eco-friendly
 An aging population
Major trends of Business
Environment in Brazil

22.  Exchange rate volatility: MEDIUM
 The dollar’s strength and the recent elections have led to the
Brazilian real falling to its lowest level in ten years.
 Sovereign Risk: MEDIUM
 This indicator has remained unchanged since our last report ,
except that the country’s investment grade is under threat;
agencies are closely monitoring the evolution of public finances
and growth.
Overall Interpretation

23.  Public Sector Financing: MEDIUM
 The announced and rapid replacement of the finance minister,
once again highlights the urgency in Brazil to start a new phase
with regard to the public accounts. For now, the new minister is
confident in his resolve to halt borrowing and meet the new
surplus target.
 Socio-political situation: MEDIUM
 At the political level, the corruption scandals surrounding the state
company Petrobras are still in the news. According to different
sources, the scandal involves up to $3,900 million that was destined
for, among other purposes, financing Dilma Rousseff’s party.
Cont…..

24. Conclusion and Recommendation
1. Brazil’s fiscal strategy remains questionable.
2. Infrastructure investment will be needed for leading
productivity to a higher and sustainable path.
3. Complex taxation is one reason for the poor performance
of GDP growth in Brazil.