The Brazilian economy is not in a good shape. The last three quarters GDPs are showing that the economy is in recession:

• 1Q2014: 0,2%
• 2Q2014: -0,6%
• 3Q2014: +0,1%

Although the euphoria with Brazils growth has passed, still is a great moment for foreign companies to invest here. The conditions are even better now than 4 or 6 years ago. Lets list some of the reasons:

Exchange Rate. in February 1st 2012, 1 USD could buy 1.72 BRL. On February 1st 2015, 1 USD can buy 2.66 BRL, what means the USD worth something as 50% more (nominal value). Good Professionals Available : during the times of growth, professional as experienced (or even not so experienced) engineers were just impossible to find. With the economy moving slower, it is easier and less expensive to hire good professionals. Maybe its possible to find a good professional recently laid-off from your competitor. Easier to Introduce a Brand in the Market : the purchase departments, who were pretty much focused, in the last years, only on supplying are now much more open to new ideas, options, suppliers and brands. Costs are Lower : Its not only the exchange rate, but costs in general are slightly lower. One example is the hotel tariffs. The Prices are Lower : If your company is considering a merge or acquisition, the prices tend to be lower not only because of the lower market expectations, but also because of eventual financial difficulties. Your Competitors Are Not Doing Essential Chores : Domestic companies are fighting to survive. They inflated their costs in the last years and now the priority is to cut spent. This means your competitors are advertising less, traveling less, investing less and visiting less customers. Governmental Incentives : Although the government is cutting spent, the incentives for new business are still open. Test for your Business Model. Trying to expand in a market during hard times is a great test for your business model and for your product. It will give for your company knowledge and experience for better times and even for other markets.

We dont want to sell illusions. It is a tough time but, even in recession, Brazil is a big economy and we would like to help your company to make a solid, coherent and economic investment in Brazil. Send us an e-mail and we will be pleased to discuss the possibilities of your company in Brazil.

Click here to read more news about business in Brazil.