Bringing Brazil Back from the Brink

Oct. 9, 2012
While Brazil is presently facing economic challenges in 2012, the activity there is an interesting mix of opportunity and development.

Last month, Brazilian President Rousseff announced a stimulus plan to bring the economy out of its current decline. The stimulus package focuses on infrastructure projects, the latest in a line of measures taken to pull the Brazilian economy back up.

Record low interest rates, tax incentives, and investments in information technology projects to build highly valued companies are just some of the other steps that the government has taken. 

Companies across the world are reacting. U.S. medical companies have been buying assets in Brazil to capture the growing need for medical care and devices. UnitedHealth Group Inc. just announced a plan to purchase 90% of Amil Participacoes SA, a Brazil-based insurer and hospital operator, so the company would have a stake in the emerging economy. 

Fiat is building their second factory in Brazil, lured there by financing options and tax breaks that will persist for five years after production starts at the new factory. 

The Brazilian government is looking to overhaul its air force and is entertaining bids on the expected $4 billion project, where Boeing is a big contender. 

While the Brazilian economy may be dabbling in recession right now, it will soon pull up. And the interesting mix of incentive and opportunity will provide for a diverse range of activity.   

About the Author

Alan Beaulieu Blog | President

One of the country’s most informed economists, Alan Beaulieu is a principal of the ITR Economics where he serves as President. ITR predicts future economic trends with 94.7% accuracy rate and 60 years of correct calls. In his keynotes, Alan delivers clear, comprehensive action plans and tools for capitalizing on business cycle fluctuations and outperforming your competition--whether the economy is moving up, down, or in a recession.

Since 1990, he has been consulting with companies throughout the US, Europe, and Asia on how to forecast, plan, and increase their profits based on business cycle trend analysis. Alan is also the Senior Economic Advisor to NAW, Contributing Editor for INDUSTRYWEEK, and the Chief Economist for HARDI.

Alan is co-author, along with his brother Brian, of the book MAKE YOUR MOVE, and has written numerous articles on economic analysis. He makes up to 150 appearances each year, and his keynotes and seminars have helped thousands of business owners and executives capitalize on emerging trends. 

Prior to joining ITR Economics, Alan was a principal in a steel fabrication company and also in a software development company.

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