Initiatives such as the Economic Freedom Law, promoted by the Government, seek to streamline administrative and legal practices to support and promote business in Brazil, especially the investment of foreign capital destined for infrastructure investments.
According to the Global Competitiveness report Index 2019 of the World Economic Forum, Brazil ranks ninth among the countries of the region in terms of business dynamism. Additionally, this nation is located in the fifth position in the ranking of the Country Brand Report Latin America 2019-2020, carried out by Future Brand, where, in addition, as the country with the best business potential.
It is evident the great effort to generate greater legal certainty, administrative facilities, among others for the modernization of the country, which represents greater private investment, economic activity and interesting opportunities to do business in Brazil.
Foreign trade promoter
Possessing a privileged location in South America, bordering almost all the countries in the region, which makes it easier for Brazilian companies to access other Latin American and African markets.
According to information published on its government website, Brazil ranks 22nd as the largest export economy in the world. They reached 239 billion dollars, while imports reached 181 billion dollars, which generated a positive trade balance of just over 58 billion dollars.
Likewise, according to an analysis published by the Argentine embassy based on data obtained by ComexStat, among the main destinations of Brazilian exports are: the United States, the Netherlands, Argentina and Japan. On the other hand, imports come mainly from China, the United States, Argentina, Germany and South Korea.
Competitive working capital
Being the sixth most populous country in the world, with nearly 200 million inhabitants, according to data obtained by the Brazilian Institute of Geography and Statistics (IBGE), Brazil has a competitive and qualified workforce of 90 million people. The nation's labor force participation rate increased by 61.9% in December 2019.
The country has approximately 16 million people with a higher education level, specialized in technical and scientific activities and more than 6 million students enrolled in technical and higher education.
Additionally, the Brazilian population has a growing middle class, which opens up a large consumer market with interesting business opportunities for foreign companies that want to expand their clients in this country.
Ideal infrastructure for business
Brazil has good infrastructure and transportation facilities, for example, its road network, which is the most used, has an extension of almost two million kilometers, of which a part is concessioned to companies or private firms through the collection of tolls. The country's land cargo transport fleet exceeds one million vehicles.
The railway network reaches approximately 30,000 km in length and contributes to its integration into the intermodal systems for transporting heavy loads, in the export and import corridors.
Additionally, as detailed on its Invest and export Brazil page, this nation has 156 Private Use Terminals (TUP), 25 cargo transshipment stations, 2 tourism port facilities and 23 registered port facilities. It also has 37 ports managed directly by the state, including Santos-SP, Paranaguá-PR, Rio Grande-RS, Itajai-SC, Itaguaí-RJ, Rio de Janeiro-RJ, São Francisco do Sul-SC, Manaus-AM, Suape-PE, Vitória-ES and São Luis-MA. Brazil has been optimally configured as a key commercial center for South America.
Possessor of an abundant and diverse energy sector where, according to the Oil and Gas Journal (OGJ), Brazil is the second country in South America, with the largest oil reserves, estimated at more than 11.2 billion barrels. It also has the largest coal reserves after the United States.
This oil self-sufficiency was evidenced in the National Energy Balance (BEN 2020), carried out by the Brazilian Energy Research Company (EPE), where during 2019 the country's internal energy supply reached 294 thousand TOE (tons of oil equivalent).
According to the results of energy production obtained in the study, 53.9% of it also came from non-renewable sources such as oil and derivatives (34.4%), natural gas (12.2%), mineral coal (5.3%) and Uranium (1.4%). In this way, it is evident that the oil and gas sector is key in the Brazilian economy. Most of Brazil's oil reserves are found in offshore reservoirs.
Additionally, there are other important sources of clean energy such as hydroelectric, wind and ethanol. Currently, 46% of energy production in Brazil comes from renewable sources, of which 75% is derived from hydroelectric power.