Anytime the economy takes a hit big banks also tend to take a hit. This is not only natural, but its to be expected. However, this wasn’t the case in Brazil. In 2014 while the Brazilian economy was suffering the main banks in the country were experiencing record profits.
How is this possible you ask? Well according to Igor Cornelsen, a Brazilian banking expert, the reason the main banks in Brazil were able to weather the storm was due to their extensive knowledge of the markets and their experience during other turbulent years.
Igor says that Brazilian banks in the private sector understood the importance of streamlining costs and giving banks a sense of security. They therefore only offered loans to the most credible borrowers.
With the Brazilian economy experiencing so much uncertainty in the last few years most investors are wondering why they should invest in the country. The biggest reason you should want to invest in Brazil is because of their abundance of natural resources. They also have an ever expanding population which opens the door for infrastructure development.
Brazil is also one of the largest producers of food in the world and it is the largest country in South America.
What You Need To Know Before You Invest
Before investing in Brazil you must first take the time to understand the basics. First and foremost Brazil is the largest economy in South America. It is basically run by ten major commercial and privately owned banks.
The ten banks include Banco Itaú, HSBC, Banrisul, BTG Pactual, Caixa Econômica Federal, Banco do Brasil, Banco Bradesco, Banco J Safra, Citibank Brazil and Santander.
Brazil is inextricably linked to China because they are big time trading partners. That means anytime the Chinese economy is strong that is a good sign for the Brazilian economy.
But here’s the interesting part. China is also Brazil’s biggest competitor when it comes to exports. That’s why it is so important you pay close attention to trading partners when you are investing in a country. Because who they trade with will also have a huge impact on your investment. For more free advice, check out Igor’s Facebook, or you can also get free advice through his blog IgorCornelsen.wordpress.com.