Private Equity and Venture Capital in Brazil - BVCA admin
Private Equity and Venture Capital in Brazil - BVCA admin
Private Equity and Venture Capital in Brazil - BVCA admin
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III. Challenges <strong>and</strong> opportunities:<br />
subpar <strong>in</strong>vestment spend<strong>in</strong>g<br />
In spite of a very successful macroeconomic story, <strong>Brazil</strong><br />
still reports modest <strong>in</strong>vestment spend<strong>in</strong>g.<br />
Any upbeat tone of the economy rapidly raises utilization<br />
of capacity to maximum <strong>and</strong> triggers <strong>in</strong>flation pressures.<br />
Opportunity: attractive greenfield <strong>and</strong> brownfield<br />
<strong>in</strong>vestment projects are plentiful.<br />
Opportunity: tight fiscal policy needed to tackle <strong>in</strong>flation<br />
restra<strong>in</strong>s federal spend<strong>in</strong>g.<br />
22549-d-092308<br />
The government needs to attract private CAPEX to complement<br />
its <strong>in</strong>vestment programs <strong>and</strong> will have to adopt a more market<br />
friendly approach towards local <strong>and</strong> foreign <strong>in</strong>vestors<br />
U.S.<br />
Australia<br />
S<strong>in</strong>gapore<br />
Russia<br />
Greece<br />
Chile<br />
Ch<strong>in</strong>a<br />
<strong>Brazil</strong><br />
Electric power consumption<br />
kWh per capita per year<br />
Norway<br />
0 5,000 10,000 15,000 20,000 25,000<br />
Source: World Bank Development Report 2010.<br />
Gross fixed capital formation (<strong>in</strong>vestment) compared<br />
35<br />
30<br />
25<br />
20<br />
15<br />
10<br />
5<br />
% to GDP<br />
0<br />
1995 1997 1999 2001 2003 2005 2007 2009<br />
<strong>Brazil</strong> World Emerg<strong>in</strong>g Markets<br />
Note(*): estimate.<br />
Source: International F<strong>in</strong>ancial Statistics (IMF).<br />
“Do<strong>in</strong>g Bus<strong>in</strong>ess” rank<strong>in</strong>g of competitiveness (1 to 183)<br />
1. S<strong>in</strong>gapore<br />
2. Hong Kong<br />
3. New Zeal<strong>and</strong><br />
4. U.S.<br />
91. Ch<strong>in</strong>a<br />
120. Russia<br />
126. <strong>Brazil</strong><br />
132. India<br />
Source: World Bank.<br />
31
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