Brazil is attractive to investors, rebounding from the worldwide recession more quickly than some other countries. Brazil is rich in natural resources and has a growing middle class ready to spend their disposable income on new goods and services. Earth Times reports that Brazil also attracts investors interested in expanding their interests in Latin America and the Caribbean region.
KPGM, a company providing tax advice to US companies investing in overseas markets, conducted a survey during a High Growth Marketing event early in 2011. This survey indicated that while Brazil’s complex tax system and relative high tax rates remain a problem, the pros probably outweigh the cons for investors interested in Brazil. High interest rates in Brazil are attractive to investors looking for big gains, reports Market Watch.
US Treasury Secretary Tim Geithner spoke in Sao Paulo, Brazil in February 2011, one month ahead of Obama’s planned visit to the city. Geithner alluded to China’s policies, which keep the yen low in relation to the US dollar, helping them retain a trade surplus worldwide. Brazil has blamed these policies for hurting their economy. Brazil held a $5 billion trade surplus with China in 2010, but this surplus was in commodity exports. Officials in Brazil say this hurts their own industrial sector.
China was a large buyer of Brazilian goods in 2010, but the US held the trade surplus over Brazil. Brazil’s Trade Minister has blamed both the US and China for a “currency war” making imported goods cheaper in Brazil than domestic products. Brazilian President Dilma Rousseff wants the US to import more Brazilian goods to help balance their trade relationship. US relations with Brazil have been mostly positive in recent years. China has surpassed the US as Brazil’s largest trade partner, according to a NASDAQ report.