From the March 2010 issue of Treasury & Risk magazine

The Party Gets Started in Brazil

Multinational corporations are increasingly attracted to Brazil, which has surmounted political instability and hyperinflation to become one of the hottest emerging market economies.

While much of the rest of the world endures the global economic recession, Brazil is basking like a sunbather at one of its pristine beaches, comfortably assured in its 5% annualized growth rate and its envied position as the 10th largest economy in the world. Hordes of U.S. and European multinationals have established operations in the country, followed by a supply chain samba line of their suppliers and their suppliers' suppliers.

In just a single generation, Brazil has emerged from political instability, hyperinflation and a massive debt load to stand alongside China and India as one of the booming emerging market economies. Brazil jettisoned its last dictator in 1985 and replaced him with a democratic government that has reined in foreign debt, implemented key monetary and other fiscal reforms, cultivated and nurtured a growing lower middle class, and invested in much-needed infrastructure projects.

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