Doing some research into emerging markets, we’ve come across this useful article by KPMG outlining ten reasons why UK business investments in Brazil are more likely to succeed. A good summary of the key opportunities for UK businesses in a main emerging market…

In summary, the reasons are:

- Brazil’s economy is riding the worldwide boom in raw materials: the global boom in commodity prices is supporting the govt budget and stimulating new investment in commodity production

- Brazil’s economy is leaving behind classic “boom and bust cycles: the economy is entering a phase of more stable and sustainable growth

- Brazil is gaining better control of currency fluctuations and inflation: relatively low inflation and falling interest rates provide a better climate for investment

- A stronger middle class is forming in Brazil: 24 million people entered the Brazillian middle classes (as measured by household income) during 2006-8

- Brazil’s home consumption is booming: rising household incomes + more than half of the Brazillian population is now under 25, stimulating a boom in consumer spending

- Brazil’s rating has been upgraded to “investment grade”: better credit rating reduces the risks of investing

- Brazil is beginning a catch-up campaign in infrastructure investments: substantial investment in infrastructure - particularly transport

- Brazil Surpasses France as Number 6 Worldwide in Automobile: automotive sector spawns a wide network of supporting industries and businesses

- The US Financial Crisis is Not Derailing Brazil: Brazil now much less reliant on trade with the US

- Brazil will host the FIFA Soccer World Cup in 2014: a significant stimulation to infrastructure investment