Venture to Brazil with IE Singapore
Largest Latin American economy
Brazil is the largest economy in Latin America and the 8th largest in the world. Despite experiencing relatively weak economic growth in recent years and a recession in 2015 and 2016, it is still on track to become the 5th largest economy in the world by 20501. With a sizeable population of over 207 million people, Brazil is the 5th most populous nation in the world2. The middle class makes up more than half the population and domestic consumption is strong, contributing some 64% of GDP3.
Oil and gas opportunities
The world’s largest oil discoveries in recent years have come from Brazil’s offshore, pre-salt basins. The country’s vast pre-salt reserves suggest substantial long-term growth potential for exploration and production. Brazil was the world’s top 10th oil producer in 2016 and has the 15th largest oil reserves. It is also 2nd in Latin America for proven natural gas reserves, with 429.9 billion m3.4
In 2017, the government launched an infrastructure concession programme to raise US$14.4 billion in investment in building and operating roads, port terminals, railways and power transmission lines. Under the separate advance initiative, about 7,000 previously-halted construction projects will also be revived, with an estimated total investment of US$40 billion. Brazil’s economy, with its great potential for public-private partnerships (PPPs), holds tremendous appeal for international investors.
Venture to Brazil
Brazil has combined abundant natural resources – extensive arable land, ample fresh water, a favourable climate and substantial mineral deposits – with modern technology to become a major exporter of products ranging from aircraft and automobiles to coffee and soybeans.
Today, about 55 Singapore companies operate in Brazil, in sectors such as education, food products, oil and gas, logistics, commodities trading, infrastructure and environmental services, and info-communications technology.
There are growing opportunities in emerging states such as Minas Gerais and Espírito Santo in the southeast, and Rio Grande do Sul and Santa Catarina in the south, which are close to existing commercial hubs but often have lower investment costs, less competition, and less pressure on infrastructure.
1: PwC report, 2017
2: CIA World Factbook, July 2017
3: CIA World Factbook, 2016
4: CIA World Factbook, 2017