Latin America, China and Europe are Brazil top exporters over the medium term. However, Brazil exports to Europe are set to decline in the medium term, while exports destined for Asia and the US continue to increase as a share of total exports. Trade with Asia (excluding Japan) already accounts for more than a quarter of Brazil’s merchandise exports. The continued rapid industrialisation of these Asian economies is expected to drive further demand for raw materials from Brazil in coming years. China and Vietnam will be the fastest-growing export destinations over this period, ensuring that China retains its position as the most important destination for Brazilian exports. 40% of Brazil’s imports come from Europe, followed by 16% from the US and China. Following a dip in imports from Asia, the share of imports from Asia is expected to rise. The UK falls behind the likes of Germany, India, Mexico, Nigeria and Chile, accounting for 1.7% of imports into Brazil.
Opportunities for UK businesses
One of the world’s most rapidly developing economies with GDP per head greater than either India or China. Certain sectors of the Brazilian market have experienced higher than average growth, such as air transportation, telecoms, oil and gas, and mining. Under the second phase of the Growth Acceleration Program the Government of Brazil will spend around US$470 billion in development of the country’s energy generation and infrastructure as well as stadiums as it prepares for the World Cup in 2014 and the Olympics in 2016. Other promising areas for UK companies include construction, aerospace and aviation, electrical power, safety and security devices, environmental technologies, retail, and transportation.
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