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Ministry of Development , Industry and Foreign Trade of Brazil Brazil-France Business Opportunities Welber Barral Secretary of Foreign Trade October 12th 2010. Post-Crisis Brazil. Last to enter and first to leave; High level of reserves (US$ 250 billion) Increase of liquidity;
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MinistryofDevelopment, IndustryandForeign Trade ofBrazil Brazil-France Business Opportunities Welber Barral SecretaryofForeign Trade October 12th 2010
Post-Crisis Brazil • Last to enter and first to leave; • High level of reserves (US$ 250 billion) • Increase of liquidity; • Reduction of interest rates; • Increase of credit • Tax breaks to affected sectors; • Increasing domestic consumption;
9,0 7,1 6,5 6,3 4,3 2,7 2,3 2,2 1,7 1,5 1,5 1,2 0,8 -1,2 -1,5 -1,6 -2,1 -3,3 I 08 II 08 III 08 IV08 I 09 II 09 III 09 IV 09 I 10 Over the previous quarter Over the same quarter of previous year Brazilian GDP Real Quarterly Growth – 2008/2010 Source: IBGE
International Reserves Jan/2007 – May/2010 (US$ billion) Source: BACEN
247 239 194 190 180 165 163 151 136 101 86 75 53 54 49 38 36 33 -12 -28 -53 -61 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 April International Reserves Net Foreign Debt International Reserves X Net Foreign Debt 2000/2010 (US$ billion) Source: BACEN
700 650 600 234 550 in 05/31/10 677 in 500 10/22/08 450 400 350 300 250 200 150 Jul Jul Abr Abr Abr Set Set Mai Mai Mai Jun Jun Ago Ago Out Out Mar Mar Mar Fev Fev Fev Dez Dez Nov Nov Jan/10 Jan/08 Jan/09 Country RiskJan/2008 – May/2010 Source: JP Morgan Bank
Monthly Unemployment Rate (%) 2007 – 2010 Source: IBGE
Inflation Rate 2000/2010 Source: IBGE
45,1 34,6 32,8 7,9 25,9 22,5 18,8 18,1 16,6 15,1 10,1 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Jan-Apr Foreign Direct Investment in Brazil 2000/2010 (US$ billion) Source:BACEN
34,1 29,6 29,3 15,2 11,8 11,1 4,0 3,2 2,8 3,1 2,0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Jan - Apr Brazilian Direct Investments Abroad 2000/2010 (US$ billion) Source: BACEN
198 173 161 153 145 138 128 132 121 119 112 97 91 91 73 74 58 63 60 56 56 55 46,5 48 47 44,9 40,0 33,8 25,0 25,3 21 24,9 13,2 7,0 2,7 -0,7 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2009 2010 Jan- Jan- Set Set Exports Imports Surplus Brazilian Foreign Trade 2000/2010 (US$ billion) Source: SECEX/MDIC
Brazil-France Trade2000-2010 (US$ billion FOB) Source: MDIC
French Investments in Brazil2001-2009 (US$ billion) • 5th investor in 2009 • Services • Mining and energy • Consumer goods • Automobile • Chemical and Pharmaceuticals Source: BACEN
Main projects to sustain growth • Growth Acceleration Program(PAC) • World Cup 2014 • Rio de Janeiro Olimpic Games 2016 • “My House, My Life” Program • Pre-Salt Exploitation
PAC – INVESTMENTS IN INFRASTRUCTURE Infrastructure projects divided in three axis US$ Billion
Challenges 2011-2014 • Regulatory reform, esp. Tax • Infrastructure • Reduction of transaction costs, esp. bureaucracy • Further reduction of social inequality • Maintain fiscal stability
Ministry of Development, Industry and Foreign Trade Thank you ! ! ! Welber Barral Secretary of Foreign Trade welber.barral@mdic.gov.br