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Main investment trends in Brazil for 2023

Main investment trends in Brazil for 2023

Considering that Brazil is the largest economy in Latin America and the 12th largest in the world, making a Brazil Investment an interesting option for foreign entrepreneurs. 

In 2021, the country reached a GDP of USD 1.61 trillion, with emphasis on the state of São Paulo, one of the main Brazilian economic centers. Currently, the state produces about 33% of the entire national gross domestic product.

In fact, the numbers are very attractive for foreign investors who have a wide range of segments to invest in. After all, Brazil has a strong consumer market with great growth potential, in addition to many water resources and raw materials. 

For this reason, many entrepreneurs are starting investments in Brazil, in addition to starting up the application for legal residence in Brazil. But, to invest more safely, it is worth knowing the main investment trends in 2023. Check it out! 

Direct foreign investment in Brazil

Brazil emerges as the center of attention for direct foreign investment (DFI). A report from the Organization for Economic Cooperation and Development (OECD) indicates that Brazil ranks in third place as a DFI receptor, just behind the US and China.

With the end of the pandemic, direct foreign investment in Brazil reached records: it rose to USD 51.06 billion, which is equivalent to a 102.7% increase in relation to the same period in 2021. 

The balance of foreign investments received by Brazil in 2021 was the highest in proportion to GDP, compared to the 15 largest economies in the World Bank ranking.

Main direct foreign investment trends in Brazil

The highly diversified Brazilian economy represents a sea of opportunities for foreign investors, offering possibilities for healthy returns in numerous segments. But most of the direct foreign investment in Brazil is focused, in particular, on services such as:

  • Financial;
  • Oil and gas industry;
  • Automotive industry and chemical industry;
  • Electricity;
  • Mining.

Fintech opportunities

Brazil is the largest fintech exporter in Latin America, with around 700 startups. In addition, the country takes the fifth place worldwide. In 2019, investment in Brazilian fintechs summed up to a total of around US$ 1.6 billion.

In the field of fintechs, foreign entrepreneurs find opportunities in areas such as: 

  • Payments and remittances;
  • Business or personal financial management;
  • Cryptocurrency and Blockchain;
  • Digital banking and technologies for financial institutions;
  • E-commerce.

Opportunities of investment in Brazil in the renewable energy sector

The renewable energy market is booming and expanding in Brazil, according to a report by the Brazilian Energy Planning Agency (EPE). The country presents one of the cleanest electrical networks in the world, having the capacity to produce electricity using 84% of renewable sources.

Furthermore, the nuclear power market is promising and Brazil has plans to increase its nuclear power generation capacity by four times by 2050, as reported by the Brazilian Association of Nuclear Energy.

In the renewable energy sector, foreign investors find several opportunities, such as:

  • Control and automation systems;
  • Remotely operated electric vehicles;
  • Nuclear plant;
  • Other renewable energies (engineering, energy efficiency, smart grids, photovoltaic, onshore wind, biomass).

How to invest and have legal residence in Brazil

If you, an investor, intend to set up business in Brazil, one of the fundamental steps is to obtain your legal residence visa in the country. This way you can manage your company closely, focusing on opportunities and business growth.

The residency process requires documentation and procedures that are facilitated by a specialized company such as Europartner. We have great know-how in foreign residency processes, in addition to legal representation and opening companies in Brazil.

Get in touch with our team and let us take care of all the legal, accounting, fiscal and bureaucratic aspects for you!

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