3. Agenda
History of Brazil
The downside of Brazil and comparison with other developing countries
• Poor national security
• Crime Rate
• Expenditure on Military
• Macro-Economic Data
• Projected GDP
The Upside of Brazil
• Unique access to Natural Resources
• Young & Strong Economy
• Strong Growth, Stability and Market friendly policies attract FDI
• Income Growth to Add new Customers
• Strong Banking facility
• Tax Benefits
• Other Advantages
4. History of Brazil
• The land now called Brazil was claimed by Portugal in April 1500, on the arrival of
the Portuguese fleet commanded by Pedro Alvares Cabrel.
• The independence from Portugal was achieved in 1822.
• The country has been a Republic country since 1889.
5. Poor National Security
•Crime: The presence of a significant criminal element within and on the fringe of
Brazil’s borders poses an ongoing threat to public safety there.
•Street crime is prevalent throughout Brazil’s major urban centers.
•Rio de Janeiro and Sao Paulo have particularly high crime rates.
•The tri-border region between Argentina, Brazil and Paraguay has long been a
hotbed of criminal activity.
6. Brazil India China
Total Crime Rate 44 30.7 19
0
5
10
15
20
25
30
35
40
45
50
%Change
Total Crime Rate
7. Military Expenditures (in US $): % of
GDP
Country Percentage of GDP US $
Brazil
$9.94 Billion
India
2.5% $19.04 Billion
China
4.3% $81.48 Billion
UK
2.4% $42.83 Billion
US
4.06% $500 Billion
1.3
%
8. MACRO-ECONOMIC DATA
Real GDP
Growth Rate
(%) 2009
Nominal GDP
Growth Rate
(%) 2009
Nominal GDP
Per Capita
Growth Rate
(%) 2009
Fiscal
Deficit/Surplus
as percent of
GDP (%) 2009
Inflation Rate
(from GDP Price
Deflator) (%)
Interest Rate
(%)
Unemployment
Rate (%)
BRAZIL -1.2 3.1 2 -0.9 4.4 19.6 16.5
INDIA 4.3 7.8 6.2 4.1 3.3 4 10.4
CHINA 6.3 9.4 8.7 8.6 2.8 2.2 7.4
-5
0
5
10
15
20
25
%change
9. REAL GDP 2010 REAL GDP 2011
BRAZIL 7.5 4.1
INDIA 9.7 8.4
CHINA 10.5 9.6
0
2
4
6
8
10
12 SOURCE-IMF
PROJECTED GDP-2010 & 2011
10. Unequal Distribution of Income
60% of the total income is held by only 10% of the people.
(Source-Worldbank)
11.
12.
13. It is one of the few countries in the world that is self-sufficient in oil and is the
world’s leader in alternative energy sources. It is responsible for 33% of the
world’s ethanol production.
Brazil enjoys an advantageous climate that is primarily free from major natural
disasters, and enjoys a temperate climate that extends the growing season
beyond that of many other countries.
With this abundance of natural resources, Brazilians are manufacturing
everything from aircrafts to hair pins.
14.
15.
16.
17.
18. Strong Banking System
Brazil also has one of the most well developed online banking systems in the
world.
Brazil’s banks are required to keep 30% of all deposits with the central
bank, plus capital reserves of at least 11% of total assets, when most
financials outside the country maintain capital ratios of 16% or more.
19.
20.
21. Corporate tax Individual tax Capital gains
Brazil 15 27.5 15
India 42 30 20
China 33 45 20
0
5
10
15
20
25
30
35
40
45
50
TAX%
TAXATION
22. With these advantages, the investors would be
in a win-win situation. The geographic
conditions, the government initiative - all
these factors make Brazil a heaven for
investors to invest in.
