Why the Timing Is Right for Port Infrastructure Investments in Brazil
- VOLUME XIX, ISSUE 38
- Executive Insights
Economic recovery, regulatory updates and the need to upgrade Brazil’s existing terminals are turning port terminals into attractive opportunities for investors. Two years into its greatest recession, the Brazilian economy is slowly resuming growth (see Figure 1). Despite of a short-term political instability, structural economic measures will most likely be implemented to put the country on a growth track.
Economists believe that investment is the engine of growth for emerging economies. That’s especially true for Brazil, which, after two years of increasing unemployment, will not see recovery come from a new wave of consumer activity but rather from investments — most likely in infrastructure, which supports other activities and contributes to higher productivity for the economy as a whole. Leading economists and financial institutions operating in Brazil expect GDP to grow approximately 0.5% in 2017 and 3% in 2018, which will positively drive demand after a strong recession.
In this context, investment in the country’s ports is key to enabling economic recovery and an important opportunity for private investors. This Executive Insights examines why the timing is right for port infrastructure investment in Brazil.