Ernst & Young Finds Global Investors Interested in Brazil

By Kalen Smith, Big4 Blogger

A new report from Ernst & Young has found that more global investors are considering investing in Brazil. Brazil’s slowing economy has not deterred them, since the country has already grown substantially over the past several years.

According to the findings of Ernst & Young’s Brazilian Attractiveness survey, investors tripled their holdings in Brazilian assets between 2007 and 2011. Over three quarters of the investors in the survey said that they felt Brazil provided more opportunities than any other country in Latin America.

Ernst & Young found that Brazilian consumers are increasing spending, which has created an attractive market for exporters throughout the world. Additionally, Brazilian firms have greater access to credit markets than other firms throughout the world.

The manufacturing, construction and IT industries in Brazil are also growing rapidly. These have been the industries investors allocated most of their capital in during 2011.

The survey takers are encouraged by the Brazilian government’s approach to improving the economy as the global financial crisis continues to escalate.

However, the participants in the survey found some challenges that have raised some concerns. One of the biggest problems Brazil is facing is a shortage of skilled workers. Investments in training will be needed before they are comfortable increasing the scale of Brazil’s manufacturing industry.