Most Brazilian financial experts agree that the current populist policies are not effective in helping the economy grow. If the policies that were in place until 2008 were reinstated, the country would likely recover from its current issues. Although Brazil has a slow GDP growth rate and a history of financial problems, the country’s economy still offers several lucrative investment opportunities for savvy investors. It is the world’s largest economy with a population of about 200 million people. As a financial writer and a native Brazilian, Igor Cornelsen suggested these top tips for profitable investments in Brazil:
- Network with Brazilian entrepreneurs.
- Be ready to deal with red tape.
- Understand how currency exchange rates vary.
Igor Cornelsen shared this advice in a press release that was recently featured on CBS8.com. In the release, Cornelsen explained that connecting with Brazilian natives is a good way to gain insight on investments since about one out of every four residents is an entrepreneur. They are often instrumental in helping foreign investors navigate regulatory issues and prepare themselves for other obstacles. Some examples include high tax rates, a rigid labor market and heavy bureaucracy. Although these issues may sound intimidating, Cornelsen assured readers that investors who make informed decisions and are persistent in following their plans will be rewarded.
Currency exchange rates were also explained in the press release. Cornelsen said that Brazil has a standard commercial rate. However, it is not applicable to all transactions. Investors have a wide variety of options to consider, and several transaction types come with their own special exchange rate. Investors must do their own research and be sure that they are working with the right rate. Also, investors must work with authorized financial institutions when conducing foreign currency exchanges.