Market profile
Brazil is a complex market to operate in but presents a set of opportunities for Australian companies in all sectors given its exceptional natural resource base, sophisticated industry and services sectors, large population (208.3 million), economic weight (the world’s ninth largest economy) and a growing middle class.
Politics and the economy are closely linked in Brazil and recent years have seen turmoil within government, a downgrading of Brazil’s sovereign risk rating, a recession and a flattening of demand in most retail sectors. To bring the economy back on track the government has committed to implement important structural reforms with its market-friendly agenda receiving support from Congress.
Brazil makes cars, trucks, planes, ships, satellites, offshore oil platforms, white goods, fashion goods, cosmetics and consumer electronic products. It has a large and internationally competitive agribusiness sector, massive oil and gas reserves, vast mineral resources and a sophisticated financial services sector. It is also one of the world’s most popular tourist destinations. The sheer size of the Brazilian economy offers many trade opportunities for Australian suppliers, particularly in-market niches that depend on innovation, research, education skills and services.
Australian interests in Brazil have witnessed solid growth in recent years. Student numbers continue to grow strongly at 20 per cent a year and cooperation between Australian and Brazilian scientific and research institutions is expanding rapidly, drawing on the common challenges both countries face.
As the two major economies located in the tropics, Australia and Brazil face some common challenges and opportunities. Australia and Brazil continue to develop a partnership for global leadership in tropical products and services such as agriculture (including bio-security), health and infrastructure, providing trade, investment and education opportunities for both countries.
Doing business
It is important to keep in mind that personal contacts play an important role in Brazil and can make the difference in doing business deals.
More information on doing business in Brazil