Growing Target for Investment Capital – Jeremy Brandl

Brazil, once considered nothing more than a travel destination, is now on the verge of a booming economy and will eventually become one of the leading economies in the western hemisphere.   The country has already taken over many positions that the United States once held. Even if the U.S. had avoided the latest financial crisis, there are forces (Demographic, material, and political) that have been scattering power among the Americas for decades.

Here are some of categories that have foreshadowed this theory:

Former leader in iron ore industry: U.S.

Current leader: Brazil

The U.S. once led the world in iron mining but now only claim 2,100 million tons in reserves while Brazil claims 8,900 million tons. Annually the U.S. produces 54 million tons where as Brazil produces four times as much.

Former leader in beef production: U.S.

Current leader: Brazil

While the U.S. still leads in production, Brazil has taken over as a world leader of exporting beef by an astounding 1.4 million tons more.

Clean energy leader (western hemisphere): Brazil

Brazil invests 0.37% of its economy in clean energy while the U.S. only allocates a measly 0.13%. Brazil is also producing alcohol fuel from sugar cane at competitive prices with petrol and has been nicknamed the “the Saudi-Arabia of ethanol.”

 

Other indications that the country of samba, soccer, and soul is on the rise, includes a twofold increase in FDI (foreign direct investment in factories and business operations) compared to India, another potential alpha-dog in world economics. Brazil’s continued income equality and increase in middle class citizens, is also a step in the right direction. The appearance of a new lower-class is indicative of the decline in income inequality. The country has also been through many years of positive international withstanding which combined with its disciplined public finances and trade liberalization has resulted in low inflation and falling interest rates. All of these reasons have forced investors to invest and potential investors to take notice.

 

 

 

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Comments
One Response to “Growing Target for Investment Capital – Jeremy Brandl”
  1. Debbie Seaman says:

    Wow, this will be a great investment opportunity. Thanks for the info, very interesting article.

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