The World Cup in Brazil coupled with the summer 2016 Olympic Games undeniably placed Brazil in the spotlight for all the good reasons. Even though much of the hype is sports-related, the nation’s economic climate has also witnessed an unprecedented positive attention. In spite of constant promises to reinvigorate the country’s economy, President Dilma Roussef has arguably shifted to her populist policies even though they hardly contributed to any meaningful economic growth in 2014. With the anticipated revenue from the World Cup and Summer 2016 Olympic Games, the Brazilian government opted to adopt an “economic matrix” that focused on slashing stock prices in sectors the government had previously outlaid policies.
With an annual GDP growth rate of less than 2%, the experimental policy has proven to be ineffective with several disappointed investors fleeing the market. Brazil boasts of natural resources, a rapidly growing middle class with a higher purchasing power and competitive agriculture production. The country’s best hope is now placed in the Finance Minister, Joaquin Levy, tasked with harnessing his valuable experience into tangible success. However, Igor Cornelsen has gone above and beyond to advise investors on the crucial tips to follow as outlined below:
- Make a formidable connection with the locals
Business in Brazil is highly dependent on relationships and networks cultivated with the natives as well as embracing their culture. According to Igor Cornelsen, one in every four Brazilians is an entrepreneur aged between 18 to 64 years of age. Moreover, Brazilians are undeniably a social bunch that welcomes friendly banter and can advise you based on personal experiences.
- Be prepared for bureaucratic red tape
Igor Cornelsen highly advises potential investors to brace themselves for numerous regulations such as high taxes, pervasive bureaucracy and restrictive labor market which pose as niggling obstacles. Getting around them can be quite challenging, but the rewards always pay off for investors.
iii. Familiarize yourself with foreign currency restrictions
Foreign currency restrictions are only effected by authorized financial institutions. As such ensure that you use the right transaction rates at any time while conducting business.