Global Summit of Women 2015 Doing Business With Brazil. A New Road Ahead

Transcription

1 Global Summit of Women 215 Doing Business With Brazil A New Road Ahead May 215 Denise Pavarina Managing Director of Bradesco Anbima s Chair

2 Brazil: A market friendly place for your business. Financial System Brazil has a sound, agile, flexible and deep banking system. Banks are able to meet corporate client needs offering a structured and diversified portfolio of products. Financial markets in Brazil are tightly regulated and closely watched by regulators and self-regulated entities. Brazil has a long-dated tradition and culture in credit, resulting in a sound financial system. Investors have their assets segregated to protect against any conflict of interests.

3 Brazil: A market friendly place for your business. Business Culture and Institutions Property rights are protected and enforced by the Federal Constitution. Courts are independent and the right to contest is enforced by law. Anti-trust and Regulatory Agencies guarantee that fair competition will be in place and contracts will be respected. The local business culture is flexible and based on relationships seeking to foster business efficiency. Entrepreneurship is evident in local markets. Consumers are cheerful over new products and quickly incorporate innovation in their daily lives.

4 Brazil: A market friendly place for your business. Friendship on foreign players Foreigners are not required to have a local partner to start a business. Foreigners are welcome within the business community and are subject to the same rules as the locals. Foreign investments and profit remittances are part of the business history for more than a century in Brazil.

5 Feb-4 Sep-4 Apr-5 Nov-5 Jun-6 Jan-7 Aug-7 Mar-8 Oct-8 May-9 Dec-9 Jul-1 Feb-11 Sep-11 Apr-12 Nov-12 Jun-13 Jan-14 Aug-14 Mar-15 Jun-4 Jan-5 Aug-5 Mar-6 Oct-6 May-7 Dec-7 Jul-8 Feb-9 Sep-9 Apr-1 Nov-1 Jun-11 Jan-12 Aug-12 Mar-13 Oct-13 May-14 Dec-14 Aug-4 Apr-5 Dec-5 Aug-6 Apr-7 Dec-7 Aug-8 Apr-9 Dec-9 Aug-1 Apr-11 Dec-11 Aug-12 Apr-13 Dec-13 Aug-14 Mar-8 Sep-8 Mar-9 Sep-9 Mar-1 Sep-1 Mar-11 Sep-11 Mar-12 Sep-12 Mar-13 Sep-13 Mar-14 Sep-14 Mar-15 Life will not be easy in 215.But 13.% GDP and Inflation Average real income (sa- R$/ month) 11.% 9.% 7.% 5.% 7.2% 2,3 2,2 2,1 2,31 2,76 2,111 2,118 2,189 2,235 2,26 2,138 3.% 1.% -1.% -3.% Source: IBGE.7% 2, 1,9 1,8 1,7 1,98 Source: IBGE, BRAM Industrial Confidence SA GDP 74.1 Market-prices Source: FGV Source: IBGE Industrial Production seasonally adjusted

6 Where are we headed to? A new Macro Policy Framework Fiscal Sustainability. Monetary and Credit Responsibility. Price Realism (Tariffs, Internal Rates of Return, Cost of Capital). Focus on Infrastructure and Efficient Capital Allocations. Support Towards Capital Market Financing Structures. Transparency in State-Owned Companies and Banks. Reforms / Micro Agenda: Outsourcing. Rational Unemployment Benefits Tax Reform: ICMS, PIS/Cofins. Business Facilitation. Multilateral Trade Focus, Beyond Mercosul.

7 Social improvements brought a lasting transformation of the economy China Internet Users (Million users) 641,6 7 LATAM Education Expenditure (27-211, % GDP) CEEMEA DEVELOPED United States 279,8 6 India Japan Brazil Russia Germany Nigeria United Kingdom France 57,1 55,4 84,4 71,7 67,1 19,3 17,8 243,2 Source: Internet Live Stats Source: World Bank, BRAM 2 Health Expenditure (28-212, %GDP) DEVELOPED LATAM CEEEMEA Source: World Bank, BRAM 7

8 Brazil s still under it s demographic bonus. Education is a growing story and social mobility is still an asset % 7% 65% 6% 55% Working-age Population (15-64 years old). % Total Population 67,3% 7,9% 15-Years 64,1% 8,, 7,, 6,, 5,, 4,, 3,, 2,, 1,, 4,278,133 School enrollment, tertiary (Total) 5,843,322 7,322,964 Source: MEC/INEP Population that left poverty (Millions of people, 23-21) 9.8 Brazil has incorporated to its middle class a country as populous as Canada, Peru or Poland. Or, yet, the some of Portugal, Greece e Hungary or ½ France or ½ UK 4.5 BRA COL PER MEX CHL

9 Japan Greece Portugal Belgium United States Spain France United Kingdom Austria Canada Hungary Germany Netherlands India Brazil Mexico Poland South Africa Denmark Korea Turkey Indonesia BBB+ BBB+ BB+ BB+ BBB BB+ A- BBB- BBB- AA- BBB- External and local solvency are remarkably high in Brazil Public Sector Ext. Debt / Reserves (%) Short-Term Ext. Debt / Reserves (%) BRA PER IND CHL MEX RUS TUR COL INO POL SOA Source: BRAM, S&P, Moody's BBB- BBB+ BB+ BBB BBB- BBB+ BB+ AA- BBB- A- BB+ BRA PER RUS COL IND MEX INO CHL SOA POL TUR Source: BRAM, S&P, Moody's Gross Debt (% GDP) Source: WEO - IMF, Apr/215 9

10 Foreign Investment in Brazil is a long-dated and robust history. Brazil is the third largest receiver of FDI in the EM World Source: BCB 4, 35, 3, 25, 2, 15, 1, 5, Source: IMF 18,822 45,58 25,949 FDI (USD mn) 48,56 66,66 62, ,74 341,34 International reserves (Dec/214, USD mn) 256, ,123 44,472 BR KOR RUS IND SIN MXN INO TUR SOA 8, 7, 6, 5, 4, 3, 2, 1, -1, Source: BCB ,76 48, Stocks and Fixed Income (USD mn) 46,159 67,795 18,453 16,534 34,664 33, Source: Unctad FDI Inflow (US$ Billlions 213) CHN RUS HKG BRA SGP MEX IND CHL IDN

11 Improvement in the Doing Business Ranking Ranking Doing business (Brazil gained 14 positions in 214) º 125º 129º 127º 126º 13º 116º Resolving Insolvency (Change of grade between DB215 and DB24) Source: BRAIN 34.8 Starting a Business (Change of grade between DB215 and DB24) Source: Doing Business Enforcing contracts (Change of grade between DB215 and DB24) Source: Doing Business Source: Doing Business 11

12 Thank you! BRADESCO: a bank with international presence Sponsor of the 216 Summer Olympic Games in Rio 12