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by • 10 February, 2009 • REAL ESTATEComments (0)1318

BRIC Report: Brazil top country for investment

Ernst & Young London recently lauded Brasil in its,  “Biofuels Country Attractiveness Index”, which scores countries on their attractiveness for investment in biofuels. Why is this interesting for an international marketing firm?

Several key points in the report suggest Brasil may be the epicenter of a new wave of development in infrastructure, industrial, commercial, multi-use and hospitality/residential development in the coming years. Brasil’s wealth of natural resources, its popularity as a tourism destination, and other import/export and economic factors make Brasil a critical market for multi-national brands to understand.

On the topic of fuel and commodities, the biodiesel report points to an increase in Brasilian biodiesel demand from  “800 million to 1.2 billion litres.” With India’s growing appetite for biofuels, Brasil’s biofuel export potential is vast. Says the report, Brasil “is also exporting increasing quantities of ethanol to the US and beyond, a strategy made possible by local investment in overseas distribution assets, which is expanding the international reach of Brazilian biofuels.”

Commodities exports, and the likely influx of investment in Brasil, will impact infrastructure and quality of life for the country as a whole, priming it as a top BRIC nation for multi-national organizations looking past the current recession for the next-big-thing.

Brasil’s property sector is turning heads for development and hospitality groups. At a recent Knowledge @ Wharton panel (attended by Criterion Global), experts such as Sam Zell pointed out that, like Mexico, Brasil subsidized low-income mortgages, meaning that conumer access to financing is more insulated from global credit activity.

Zell also said the country has “unlimited [natural] resources,” and, unlike Mexico, a strong executive talent pool to help outside investors achieve scale in operations. On the retail side, Zell noted that store sales are up 12% from last year in the malls owned by his group — a stark contrast to the recent U.S. figures. “If you look at all of the facts, I don’t think there’s another environment in the world that’s better than Brazil.”

For information on the Ernst & Young biofuel investment report, click here.

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