Brazil is the largest economy in Latin America and is among the top 15 economies in the world. Discover the advantages and investment opportunities by region and sectors in Brazil.
If you are planning to invest in the Brazilian territory, you need to know the opportunities and how they become more or less interesting over time. Therefore, finding the sectors to invest is essential.
Our partner, Europartner, a accounting, tax and legal consulting company, has mapped five main sectos to invest in the next years. Find bellow:
TECHNOLOGY
One of the main segments in full development, in Brazil and worldwide. In the era of Digital Transformation, there is more and more demand for the type of solution offered. Due to that, technology companies have been standing out and gaining value. This s especially relevant for innovative businesses with strategic solutions, such as systems for other companies.
If you are going to invest in stocks, therefore, the stock market has attractive alternatives. Among Brazilian companies, some examples of technology are TOTVS, Linx, Locaweb and others.
Furthermore, it is possible to resort to international stocks, because the biggest technology companies were born in the United States. Among the possibilities, there are from consolidated companies such as Apple, Microsoft and Google to those that have gained recent projection, such as Netflix.
To have access to them from Brazil, it is worth evaluating investments in BDRs.
E-COMMERCE
Throughout the pandemic, one industry saw a major evolution: e-commerce. This was due to the conditions imposed by the period, which led to the temporary closure of non-core businesses. Added to this, was the fact that many consumers chose to protect themselves from possible exposure to contamination. As a result, the number of purchases made through digital channels has skyrocketed, strengthening digital commerce.
The new situation has brought new consumers and businesses to the consolidation of e-commerce all over the country. A survey from Retail X has showed that Brazil had the biggest growth of the year among all countries in Latin America. The sales have grown US$8.1 billion in 2022 in comparison to 2021.
REAL ESTATE
When thinking about investments, it is very common for the real estate market to be remembered as a safe alternative – especially in times of financial uncertainty. The sector, in fact, may have strength in 2022, but there are ways to invest with more advantages than buying physical real estate.
Instead of compromising liquidity with a very large allocation of capital to buy a property, you can think about Real Estate Investment Funds (FII), for example.
In this alternative, investors acquire quotas and have the right to participate in the fund´s results. In practice, the profitability happens both by the appreciation of quotas and by the distribution of dividends.
FINANCIAL SERVICES
Due to the consolidation in their market, companies in the financial sector usually present good results. The highlight goes to the big banks, which usually report profits in the billions and have total assets that add up to trillions.
Therefore, fundamentalist analysis based on the balance sheets usually has attractive results. For 2022, it is still possible that institutions will suffer the impacts of the crisis, such as defaults. However, most of the provisioning was carried our in 2020 and 2021.
With the end of the emergency loans offered by the Government, there is also a tendency for an increase in hiring at banks. Therefore, it may be interesting to evaluate the possibility of investing in companies in the sector, such as Banco do Brasil, Itaú and others.
INFRASTRUCTURE
Brazil relies heavily on logistics and tranportation networks to guarantee its competitivenss and to keep growing.
Other infrastructure assets, such as power generation, mining, and sanitation, are key issues for Brazil’s development as well. The infrastructure sector has a central role both in the development of the Brazilian economy and in the increasing of its competitiveness. Therefore, the government has been reshaping its efforts to boost this sector. The infrastructure projects portfolio has been increasingly diversified and there will be several investment opportunities in the coming years for the supply chain, prison systems, national parks, basic sanitation and even bid for construction and operation of new structures
Do you want to invest in Brazil and expand your business worldwide? Talk to our specialists! We can help you develop and grow in the country.
