Opportunities and Challenges

Which are the most interesting business opportunities for foreign companies in Brazil right now? Domestic demand is very strong, for example for cars, housing, or consumer durables. Two factors are driving domestic demand: On the one hand, more employment and increased minimum wages have led to the appearance of a new group of consumers: low income households spreading all over the country. On the other hand, low inflation and lower interest rates have boosted consumer finance. Where do you see the biggest challenges for companies doing business in Brazil? Without any doubt in the strengthening of the Brazilian Real, not only against the US dollar but also the Euro. A strong currency exposes a country to international competition, makes imports cheaper, exports more expensive, it magnifies sectoral inefficiencies. The first to feel the pressure were textiles and shoe businesses. But it also offers the opportunity for new players to bring state-of-the-art technology, to modernize plants with high-tech equipment, to re-shape value chains