Brazil’s Return to Positive Growth

Brazil has been in our radar for quite some time as this emerging country is adjusting towards a more open economy.   Growth is projected to rise gradually during 2017 according to the Organization for Economic Cooperation and Development as the economy is finally emerging from a severe recession, although political noise is still high.

New findings revealed that Brazil is becoming attractive to private equity firms that want to diversify into emerging markets.  A new study from BBVA reports that the global economy will accelerate in 2017 and 2018 with Brazil having many factors favoring its way to recovery such as stabilization of terms of trade, lower inflation, declining interest rates and the overall global growth but downside factors still remain.  Brazil’s GDP is expected to grow over 1% during 2017.  According to Boston Consulting Group, over the next decade, the country will offer a rare opportunity to both global firms that want to add emerging markets to their portfolios and local firms in Brazil that want to step up their investments there.”  Brazil’s moderate rebound is being driven by rising household consumption, higher public spending, increased foreign direct investment and higher portfolio investment.

AFLG’s commitment is to continue investing in great businesses where our capital and strategic insight can drive transformation.  Brazil has its unique aspects of its investment market and we are looking beyond the traditional transactions in order to avoid high competition.  In addition, we are focusing on industries that we can bring our expertise to the table and ultimately creating value.  According to Mr. Freddy Russian, CEO and President of AFLG Holdings, Inc., “Brazil is attracting much of the foreign investment and is becoming a top market for global investors.  We are taking advantage of the Brazilian investment opportunities and diversifying into this emergent market by getting the knowledge and deep understanding of its market.  We are adopting a long term view as we believe that some industries will expand significantly in the coming years.”