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Brazil 巴西. Brazil Economy Business Opportunities 20 May, 2011 Jessy Ma, Senior Trade Officer Trade & Investment Promotion Bureau Consulate General of Brazil in Hong Kong. Brazil. Brazil 巴西. Population: 190 million (5th) Area: 8,5 million km2 (5th)
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Brazil 巴西 Brazil Economy Business Opportunities 20 May, 2011 Jessy Ma, Senior Trade Officer Trade & Investment Promotion Bureau Consulate General of Brazil in Hong Kong
Brazil 巴西 • Population: 190 million (5th) • Area: 8,5 million km2 (5th) • Capital: Brasília(巴西利亞) • Official Language: Portuguese • GDP (Purchasing Power Parity): US$ 1.984 trillion • GDP Per Capita (PPP): US$ 10,465 • GDP (Nominal): US$ 1.665 trillion • GDP Per Capita (Nominal): US$ 8,295 • Currency: Real/Reais [R$] • (R$1=HK$ 5.1/ US$=R$ 1.6 (April 2011)
3rd largest market of cell phones, cosmetics and soft drinks
World’s 5th largest manufacturer of automobiles
World’s 4th largest manufacturer of aircraft and top producer of models seating up to 120 passengers
GDP Growth in Brazil Source: The Economist
Economic Growth • Investment enhancement • Employment generation • Strong domestic demand • Social inclusion and income distribution • Inflation under control Financial Crisis • Tax cuts on durable goods maintained household consumption as on pre-crisis growth levels • Effective counter-crisis fiscal policy at low cost (1.2% of GDP) • Credit expansion (also driven by state - owned banks) • A powerful Development Bank – BNDES
Arising Middle Class Source: FGV and IBGE – Brazilian Research Centers
Purchasing Power Source: DIEESE – Brazilian Researsh Center - R$ 510 = US$ 320
Sustainable Growth: consumption and income Consumer market Retail sales growth (% on 12 months accumulated) Income growth Per-capita income growth by region (average % 2003-08) Source: Brazilian Institute of Geography and Statitics (IBGE)
Employment Rate 2010 – 2,5 million new formal jobs created Source: Ministry of Work and Employment
High Level of International Reserves 31/12/2010 US$ 289,5 billion Source: Brazilian Central Bank
Trade flow Brazilian Trade Flow – in US$ Billion • 2010: Brazilian exports = US$ 201 billion • Diversification of trade partners: less vulnerable Source: Ministry of Development, Industry and Foreign Trade (MDIC)
Brazilian Foreign Trade 2010 Brazil – China Trade • Export to China: US$ 30.8 billion (#1) • Import from China: US$ 25.5 billion (#2) Brazil - Hong Kong Trade • Export to HK: US$ 1.86 billion • Import from HK: US$ 529 million • Re-Export from HK to Brazil: US$ 8.97 billion Brazil – Macao Trade • Export to Macao: US$ 133.858 thousand • Import from Macao: US$ 5.548 million
Brazil - FDI inflowsUS$ billion • Brazil has became one of the leader recipients of FDI in the last decade, attracting investments to various sectors of the economy. Source: Brazilian Central Bank
Estimated Investments • Growth Acceleration Programme (PAC) • Investments of R$959 billion ~ US$ 535 billion (2011-2014)
Research & Development • Establishment of Government policies to reach 1,5% of the GDP in R&D in the next 2 years • Space/Satellites Research = Investments of US$800 million/year • Focus on Hydroelectricity, Oil and Gas, Biofuels, Aerospace and Agribusiness • Government Action Plan on IT = US$ 27 billion - 2010-2012 • Financial Incentives: • Tax Deductions • Public financing for Technological Innovation • R&D Investments (2008) Source: Ministry of Science and Technology
Workforce to Meet Investors Demands • 180 universities • 210,000 researchers at universities and private companies • 24,719 undergraduate courses in Brazil • - 133% growth since 2000 • 5.08 million students enrolled in undergraduate courses • - 88% growth since 2000 • 150 thousand students enrolled in graduate courses • - 58% growth since 2000 • 50,000 professionals in electrical engineering, computer and telecommunications, physics, among others Source: CAPES
APEX-BRASIL: FDI Promotion Services • Assistance throughout the entire decision making process: • Strategic knowledge about markets and industries • Tailor-made information • Contact with key players • Identification and promotion of investment opportunities • Organization of prospective missions to Brazil • Guidance on key investment location issues • National network with federal and state institutions
Trade & Investment Promotion Bureauwww.Brazil.org.hkSecom@Brazil.org.hkPhone: (852) 2525-7003Fax (852) 2877-2813 Thank You!