Prepared by Chris Cote and Mark S. Langevin, Ph.D.
Brazil is undergoing a rapid transformation from inward oriented national development to a fully globalized political economy whose government is quickly learning how to craft public policies to guarantee economic stability, growth, and an ever increasing list of private sector opportunities. Brazil still faces significant challenges, including stagflation (slow growth with inflation), but the current governing coalition is committed to a sustainable set of heterodox measures to further liberalize the economy while providing significant public investment, especially in energy and infrastructure, to insure continued growth in the coming years. This favorable scenario provides ample opportunities for United States headquartered capital goods manufacturers to increase exports to Brazil, increase investments in Brazilian manufacturing, and deepen and develop strategic partnerships with Brazilian firms and producer associations. These opportunities come with significant challenges; therefore U.S. firms and investors must carefully identify and assess an expanding list of opportunities as well as a resilient set of institutional obstacles, weighing present market conditions with sensible forecasts of future possibilities.
For more information and analysis on Brazil's capital good marketplace and its import opportunities, read BrazilWorks briefing paper,