Wide Brazil - Open a company in Brazil

20 de April de 2020by Wide Brazil0

The Time to Invest in Brazil is NOW!

The COVID-19 pandemic has put the entire world on the same side of a barricade fighting an enemy the likes of which we have never seen before. The virus is spreading at an alarming speed, ending lives or changing them forever.

There are already experts predicting that the world economy will most probably take a more damaging blow from the Coronavirus than it took from the 2008 financial crisis. In what seems to be one of the bleakest periods in human history, there are still a few silver linings in which we can take comfort.

While the world economy may come out of the pandemic a bit weaker and more hesitant, not all the national economies will follow suit. Some of them will bounce back stronger than ever depending on the measures that their governments are taking now.

Brazil is one of the few countries that are looking to fight off the pandemic without hurting the people or damaging its economy. It is a thin line to walk, but so far the South American state is showing a remarkable balance and a steady trajectory.

The Brazilian economy will most likely recover quickly and emerge as one of the leading economies in the world in the next few years. However, investors should not wait for the pandemic to pass. The time to invest is NOW!

Here are a few reasons for which entering the emerging Brazilian markets while COVID-19 is still running rampant is a good idea:

Governmental Support for the Economy

The Coronavirus pandemic reached Brazil long after it had hit Asia, Africa, and Europe. The Central Government had a few weeks to prepare ahead, and they used that time to adopt a “war budget” to separate Coronavirus-related spending from the government’s main budget and shield the economy.

The country is looking to ease fiscal and budgetary constraints and to accelerate the adoption of measures that would tackle the outbreak. The new budgetary modifications allow the Brazilian Central Bank to buy bonds in an attempt to stabilize the financial market.

Helpful Measures from the Central Bank of Brazil

With the support of the Government, the Central Bank of Brazil has quickly imposed a few emergency measures to reduce the damage that the economy might take:

  • Lowering the benchmark Selic rate by 50 basis points to a record low 3.75%
  • Intervention in the foreign exchange market to stop the Real from depreciating
  • Opening a $60 billion swap line with the U.S. Federal Reserve
  • Repurchasing Brazilian dollar-denominated sovereign bonds from domestic financial institutions
  • Injecting up to 1.2 trillion reais of liquidity into the economy

Emerging Economy Sectors

Benefitting from this fiscal stimulus and support measures are several sectors of the Brazilian economy. Some of these markets, like agriculture, services, and technology were already on the rise before the pandemic struck. Now, with further governmental and banking help, they should emerge even stronger once the side effects of the pandemic subside.

The Advent of E-Commerce

Waiting for the COVID-19 pandemic to completely disappear from Brazil before investing in the local economy would be a waste of time.

Thanks to the advent of e-commerce and the internet, the world is more connected than ever. It means that there is more room for foreign investment in Brazil now that the cultural and geographical distances have decreased.

As a foreign investor, you can take advantage of the current situation and access one of the few emerging economies that are still standing strong in the pandemic hurricane. With support from the local experts, you can open or expand a business in Brazil, and watch it develop into a successful company before and after the pandemic ends.

Wide Brazil

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https://widebrazil.com/wp-content/uploads/2020/01/LogoWide.png

Wide Brazil is a company that specializes in helping foreign businesses grow in conjunction with the Brazilian economy.

Find UsInformation
Av. Mofarrej 346, São Paulo, 05311-000
https://widebrazil.com/wp-content/uploads/2020/01/selo.png
Our LocationsWhere to find us?
https://widebrazil.com/wp-content/uploads/2020/01/Mapa.png
GET IN TOUCHWide Brazil Social links
Our experience in working with these business giants.

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WideBrazil 2021® – All Rights Reserved

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