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Investment Climate In Brazil

Investment Climate In Brazil. Presentation by Anand Nagaraj Citi Commercial Bank - Middle East Product and Marketing Head. 10 Aspects About Brazil’s Current Investment Climate. 14.0. 13.0. 12.0. 11.0. 10.0. 9.0. 8.0. 7.0. 6.0. 5.0. 4.0. Mar-10. Mar-11. Mar-12. Mar-02. Mar-03.

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Investment Climate In Brazil

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  1. Investment Climate In Brazil Presentation by Anand Nagaraj Citi Commercial Bank - Middle East Product and Marketing Head

  2. 10 Aspects About Brazil’s Current Investment Climate

  3. 14.0 13.0 12.0 11.0 10.0 9.0 8.0 7.0 6.0 5.0 4.0 Mar-10 Mar-11 Mar-12 Mar-02 Mar-03 Mar-04 Mar-05 Mar-06 Mar-07 Mar-08 Mar-09 Unemployment Rate Unemployment Rate (s.a) 1) Strengthening of Social Programs to Reduce Inequality, Large Consuming Middle Class • 40 million people moved up on the social scale, 55% in Middle Class • On top of the pyramid is 160,000 millionaires – 11th biggest country in this respect • Mix of economical/political stability over last 20 years Unemployment Rate Real Wages Source: IBGE and Citi Source: IBGE and Citi

  4. 4.0 QoQ GDP Growth 3.0 2.0 1.0 0.0 -1.0 -2.0 -3.0 -4.0 -5.0 2009.I 2010.I 2011.I 2012.I 2008.I 2013.I 2008.II 2009.II 2010.II 2011.II 2012.II 2013.II 2009.III 2010.III 2011.III 2008.III 2012.III 2013.III 2008.IV 2009.IV 2010.IV 2011.IV 2012.IV 2013.IV 2) 7th Strongest Economy in the World (by GDP), and 1st in Latin America • GDP reached USD 2.2 trillion in 2012 • Constitutes 42% of Latin America’s GDP GDP Growth Source: IBGE and Citi

  5. 14 12 10 8 6 4 2 1.49 0 Oct-03 Oct-04 Oct-05 Oct-06 Oct-07 Oct-08 Oct-09 Oct-10 Oct-11 Oct-12 20.0 in % 18.0 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 3) Brazil Has Become a Stable Business Environment • Stable inflation since second half of the 90’s and decrease of local interest rate • Brazilian reserves USD 36bn in 1999, USD 379bn in 2012 • “Investment Grade” rating after the global financial crisis in 2008 Consumer Inflation Index (IPCA) Real Interest Rates Source: Bloomberg and Citi Source: Citi

  6. 4) Wide and Diverse Production Matrix

  7. 5) Brazil Occupies Relevant Global Position in Oil Production • 15th position globally for oil production – 13.9bn barrels in 2012 • Leverage towards self-sufficiency

  8. 6) Sophisticated and Efficient Financial Market Structure • Capable of supporting global expansion of Brazilian companies • Bovespa (Brazil’s main Stock Exchange) was 3rd biggest in the world in 2012 – USD 13tr on negotiated volumes • 466 companies listed on the stock exchange – 23rd ranking globally in this criteria • Total CAP of the stocks traded in Brazil are the 7th biggest in the world Equity Market Capitalization Source: BM&F Bovespa

  9. 7) Foreign Direct Invsestment More Than Doubled in the Last 12 Years • FDI increased from USD 32.8bn in 2000 to USD 66.6bn in 2011 Foreign Investors - (Participation by Region)

  10. 8) Exports and Imports More Than Doubled over the Last 7 Years • Volumes of exports grown from USD 96.7bn in 2004 to USD 256bn in 2011 • Main export products: Iron ores and concentrates (15%), Petroleum oils, crude (8%), Raw sugar, cane (6%), Soya beans (5%), Poultry (3%) • Major Export Partners: China (15%), United States (10%), Argentina (9%), Netherlands (4%), Germany (4%) • Imports grown from USD 62.8bn in 2004 to USD 226.2bn in 2011 • Main import products: Cars (6%), Petroleum oils, refined (5%), Parts and accessories of the motor vehicles (4%), Electronic integrated circuits (3%), Medicaments, packaged (2%) • Major Import Partners: United States (18%), China (16%), Argentina (10%), Germany (8%), Korea, Rep. (5%)

  11. 9) Investments on Infrastructure Related to Upcoming Major Sport Events • 2014: Brazil to host the FIFA World Cup • 2016: Brazil to host the Summer Olympic Games • Increase in participation of private capital (both local and foreigner) on infrastructure- Privatizations and Public and Private Partnerships of certain airports / railways / roads / ports Private Consumption x Investments Source: IBGE and Citi

  12. 10) Citi Brazil a Benchmark on Cross-Border Operations • Banking with Citi opens capability of differentiating from local comeptitions due to cross-border capabilities and foreign trade operations • Citi entered Brazil market 1915 (97 years) • Citi Brazil in major parts of the territory; present in all major cities • Headquarters in Sao Paulo • Full product suite serve companies both locally and internationally: • Citi Transaction Services (CTS) • Citi Commercial Bank (CCB) • Consumer Banking

  13. END

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