AMSTERDAM, November 26, 2012 /PRNewswire/ --
Brazil's economy is showing signs of a rebound in the second half of 2012 and this should gain strength in 2013. Much of the improvement is based on an expectation of recovering export markets, especially China, higher commodity prices and a mild, though still uncertain, recovery in the global economy. Moreover, anticipation of increased domestic expenditure in the run up to the FIFA World Cup in 2014 and Olympic Games in 2016 is expected to result in a 4% to 5% rise in GDP.
Numerous economic indicators point in the direction of improving business conditions, including a further drop in inflation, which had already fallen to 5.4 % in October, and September's unemployment rate which, also at 5.4%, is near a record low. Together with rising average incomes, this is all helping to sustain domestic consumption. The Brazilian Real (BRL), has stabilized over the past year following a period from 2009 to mid-2011 during which it gained almost 50% against the US$ making imports more attractive in Brazil.
The upshot of these factors is that Brazil is becoming increasingly attractive as an export market, especially as more established markets are either stagnating or shrinking. However, as with any foreign market, successfully exporting to Brazil can prove elusive without the right preparation - and precautionary measures. In Q3 of 2012, 7.9% of payments by consumers and 5.9% of payments by businesses in Brazil were made more than 90 days late. In addition, at 126 th out of 183 countries, Brazil ranks fairly low on the World Bank's 2012 assessment of the 'Ease of doing Business'.Atradius has put together a package of valuable information to aid businesses that are interested in building their trade with companies in Brazil, consisting of two publications - ' Trade successfully with Brazil' and the 'Brazil Country Report' - and a live webinar ' The key to business success in Brazil' (to be streamed live over the internet on 28 November), in which experts on doing business in Brazil will discuss many of the key issues that exporters to Brazil should consider. 'Trade successfully with Brazil' highlights 10 factors that a business should address when - or even before - entering into an export contract with a company in Brazil. Among the issues covered are:
- understanding the social and business culture of Brazil, to ensure better preparation for negotiating and meeting customer expectations
- gaining an awareness of the relevant - and sometimes onerous - regulations that may impact the sale
- complying with local laws, even when the contract is based on the laws of another country
- making sure that the buyer's representative agreeing to the sales contract is authorised to do so
- protecting sales against the risk of non-payment