Gaining an Investment Foothold in Brazil: Challenges and Opportunities

Published in MarketWatch

Entering into a new market always provides unparalleled opportunity alongside unpredictable challenges. Investing in Brazil is no exception. The 5th largest country in the world, Brazil boasts the 12th largest world economy and a GDP valued at R$7.348 trillion (US$1.363 trillion) in 2020. Brazil constitutes half of South America and has the largest economy in Latin America. With a population of around 211 million, Brazil represents a significant member of the BRIC economies, alongside Russia, India, and China. 

Brazil has established itself as a large player in global emerging and developing markets, especially within the sectors of import & export, telecoms, oil and gas, transportation, consumer goods and services, and mining, and other high-growth sectors. The Brazilian consumer base is immense, and the country is noted as being an ideal place for tech startups. These factors have created exceptional growth opportunities for investors looking to enter at reasonable prices and hang on for the long run. 

There is no doubt that Brazil presents characteristics of a dependable global market for experienced investors. However, Brazil is also one of the world’s most challenging economies to achieve successful market entry for investors, businesses, and other organizations. Complex and constantly changing regulations, an unstable economy and currency, and high unemployment can all contribute to a rocky go-to-market strategy. Even the most experienced individual and group investors should exercise caution when looking for a new venture in Brazil and consult the advice of market experts. 

Masago Advisors, which specializes in Market Entry, Business Strategy, and Wealth Management, has its eye on Brazil as the next potential market to offer support for their clients. For entrepreneurs, investors, and corporations looking to expand their portfolios and business reach, now is the time to gain a strong foothold in the Brazilian market with Masago Advisors.