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Brazil’s Emerging Economy Equals Big Shift

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Brazil has recently been showing distinct and overt signs of growth. The South American country now hosts an economy that has overtaken the UK as the sixth largest in the world. With a population of 200 million, Brazil is proving to be a major power player, especially given its close connection to fellow up and comer China, with both countries leading a new economic shift.

Just what exactly will this mean for the global industry and why the sudden shift of power?

In exploring these questions, two things are for certain. The industry will see a significant shift of focus to the infrastructure development of these up and coming BRIC or ‘big four’ countries, which include fast developing countries with high populations including Brazil, Russia, India and China. The BBC has already reported that it is predicted that India will move five spaces from its position as the 10th to the fifth largest economy in 2020.

The connection between the two countries has been showing strength since late last year.  We have reported the increasing presence of China in South America, with a specific investment in Brazil’s oil and farming sectors to the tune of US$15 billion.

Brazil and China have developed an incredibly strong trade connection that is based almost solely in industry sectors, such as trade of materials for infrastructure and mining. Given the strong trade connections between Brazil and the US as well as China and Australia, a domino effect will take place in the industry, with the two emerging countries creating opportunities for increased industry presence in western countries.

Again we come back to the questions of why, and just how the shift has occurred?

While there are various reasons, a strong industry investment in addition to high population rates have seen the economies of up and coming nations skyrocket. The GFC has taken a major toll on industrialised, capitalist, western countries and has closed major economical gaps between these developed nations and their developing counterparts.

While the idea of these nations leading the way in terms of economical and industrial power may be daunting, it does not have to mean negativity. Brazil has an incredible body of sustainably driven industry projects; with the country boasting one of the highest amounts of LEED certified buildings globally. Their strong green initiative has placed them in the world’s top five LEED driven nations, and with the enormous infrastructure boost the country is still yet to receive in light of the 2014 World Cup and 2016 Olympic Games, Brazil’s position as responsible global industry leaders is firmly cemented.

While there are a lot of questions still to be explored in this new industry era, the underlying element is positivity. We are most definitely at the beginning of a global shift that doesn’t emphasise extreme capitalist greed, but rather shifts the focus to infrastructure stimulus, increased populations and sustainable living.

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