FOREIGN INVESTMENT IN BRAZIL IN 2019 – POSITIVE PERSPECTIVE
Based on a private report of a meeting of the members of Vivacqua Advogados Law Firm with a group of representatives of a Foreign Investment Fund in Miami, we summarize below some conclusions about foreign investment in Brazil in 2019:
· The victory of the candidate Jair Bolsonaro for the Presidency of Brazil brings the prospect of an increase in the appetite of the foreign strategic investor if the liberal economic agenda announced during its campaign is fulfilled and promote a more pronounced growth of the economy.
· There is a pent-up demand both in domestic consumption and in the generation of new businesses, which always leads to an increase in foreign “appetite”.
- The conclusion is that despite the wave of uncertainty generated by the electoral dispute, this may be the best time for foreign investors to land in Brazil.
- Despite the economic and political problems of recent years, the economy grew in 2017 and 2018 and projections are up 2.4% by 2019.
- Brazil is a major global player. The expectation is that trade tensions between the US and China, while tending to negatively impact the world as a whole, should not diminish foreign interest in the Brazilian market.
The slogans in the market are innovation, flexibility and agility. The companies that are most likely to succeed in this new economic cycle are those that work with the production of alternative energy, use proposals of collaborative economy and present new ideas in the field of intelligence artificial and automation, as well as having disruptive projects for the financial market.