26 set Investing in Brazil – Latin America’s Powerhouse
By Sergio Sardenberg and Francisco A. Fabiano Mendes
The current financial meltdown has impacted other countries in different ways and varying degrees. The extent of the damage abroad has been a function of the greater or lesser vulnerability of national economies to external influences and their degree of interrelation with, and/or dependence on the U.S. economic/financial system.
As such, a determination of such factors is a must in the process of searching for good investment opportunities abroad.
It is the contention of this article that Brazil remains an excellent target for foreign investment, given the resiliency and breadth of its booming economy, which has become the tenth largest in the world. With a 1.31 trillion-dollar GNP – just below Canada (1.44 trillion)
It should be mentioned, as a preliminary consideration in an analysis of the status of the country’s economy that Brazilian banks operate under a set of strict regulations that have had an inhibitory effect against unorthodox, risky financial practices, such as the subprime operations.