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The Reasons for Brasil's Great Financial Performance in the last Decade

When people talk about emerging markets they almost always focus on China and India, however this ignores one of the most successful of the emerging markets, that being Brazil. With a very large population and a nation blessed with abundant resources Brazil has a number of advantages over countries like China and India which tend to be resource poor. As a result Brazil has been able to build one of the strongest economies in the developing world.

flag brazil image The biggest reason for the growth of Brazil's economy in recent years has been the strong performance of the commodity sector. Brazil is a major producer of many natural resources as well as of agricultural products. They have benefited enormously because of the huge increase in demand for commodities over the last few years. This has allowed the country reduce its debt and actually start to build up a trade surplus, it has also allowed the value of the Real to rise. All of this has allowed Brazil to develop other parts of their economy.

One of the surprising areas of growth for Brazil in recent years has been in the technology sector. According to Fisher Investents press the amount of money from foreign investors that has been put into research and development in Brazil has increased fifteen fold over the last decade. Clearly this has played a major role in the development of the Brazilian economy. All of this money going into developing technology in Brazil has turned it into a world leader in a number of fields which has helped to increase exports and to diversify the economy. For more updates check FI's Twitter account, their stream is very valuable!

One of the benefits of all the money that has gone into research and development in Brazil is that they have been able to turn that research into products which they are able to manufacture. The result is that the country is now a major player in fields like aerospace. This gives them a significant advantage over other developing nations in that most of their manufacturing is in fields that are usually done by industrialized countries. This means that they are by and large no competing with China or India who really don't have well developed aerospace industries. This has resulted in Brazil becoming one of the leading manufacturing nations in the world.

Of course none of Brazil's growth would have occurred if the government hadn't created the environment to let it happen. In the past doing business in Brazil was a nightmare because of all the rules and red tape that you had to deal with. This has been largely eliminated by the government who have made a concerted effort to attract foreign investors by simplifying the rules. In this respect they have been very successful and the economy has grown at a very high rate compared to the rest of the world.