Brazil offers both opportunity and complexity

Brazil is the eighth largest economy in the world and currently one of the most attractive countries to invest in. GDP growth of 7.5% in 2010, a decade of low unemployment and rising capital inflows show that Brazil has successfully weathered the global financial crisis. It also looks set for continued growth in the near future with the coming of the 2014 World Cup and 2016 Olympic Games. An estimated 20 million people have risen above the poverty line since 2003, and the Brazilian workforce, thanks partly to its demographic makeup, is well suited to ensure the country’s continuous growth.

In recent years Brazil has become a major destination for foreign investment, and China is becoming one of the main investors in the country. Chinese companies have invested significantly to secure raw materials, energy and agricultural products, but lately Chinese investments have broadened into infrastructure and consumer goods (as Chinese manufacturers intend to participate in the consumer boom that Brazil is now undergoing). Brazil is, however, a complex country that is very different from China in many respects. It is important for any potential investor fully to understand the economic and legal framework of the country.

The current government is keen to promote investments in several sectors that offer opportunities to foreign investors.

Francisco Soler Caballero is managing partner of the Shanghai office of Garrigues. He is a specialist in foreign investment in China, corporate law and commercial contracts. He may be contacted on +86 21 5228 1122 or by email at francisco.soler.caballero@garrigues.com