Value through Innovation20 April 2014

Brazil is developing into a major player in the global economy

For many decades, Brazil was considered as “the country of the future” due to great opportunities for exploiting mineral resources and the entrepreneurial spirit of its people. The country has now reached the future. According to a recently issued report from the Centre for Economics and Business Research, the Brazilian gross domestic product (GDP) ranked 6th worldwide.

Due this positive scenario, reports about the country are appearing in the world’s most important journals and magazines; this time not because of the Brazilian soccer team’s goals or the joy of carnival.

The headlines now report that the country’s inflation is under control, that foreign investors’ confidence has improved and that export figures are rising. Containers of orange juice, coffee, soya, iron ore and biofuel, besides other products, which are exported mainly to China, the USA, Europe and Mercosur economic region, represent 25 % of GDP. Such growth makes the country more attractive to foreign investors. Despite the external crisis situation, Brazil in 2011 achieved record amount international investment in the production sector (USD 60 billion).

Brazil’s economy has grown so strongly that in the past seven years the number of people moving up into the income groups A (BRL 12,926 per month), B (over BRL 2,565) and C (over BRL 1,024) was equal to half of the population of Great Britain, The most surprising gains were in group C, where 39.5 million people joined the group between 2003 to 2011, a 46 % increase. Currently, over half of the Brazilian population is now considered middle class (94.9 million).

A striking feature of the new Brazilian middle class is the predominance of young people and the large proportion of women as the head of the family. This is a unique scenario that the country has never previously experienced and that is favorable for consumption in practically all markets, including the pharmaceutical market.

In addition to these figures, Brazil is pleased to be in the position of being socially and politically stable, free of nuclear weapons and having huge production potential in terms of energy, minerals, manufacturing and food. It is also worth mentioning its multicultural diversity and its rich flora and fauna.