INTERVIEW: Diego Ures, head of investments at Sidera Consult.
What is the current world scenario today for international investors?
The developed world – USA, Europe, Japan, OECD members (Organization for Economic Cooperation and Development) – is facing a period of great difficulty in economic development, with reduced growth rates. Unemployment in those countries remains stable, but not registering major improvements, and those countries’ monetary policies have resulted in very low interest rates, sometimes even negative. That phenomenon does not encourage economic growth, let alone investments. With that in mind and looking for attractive profits, investors are automatically turned to countries where those great leaps of development take place. In other words, for over a decade, attention has been turned to countries such as those of BRICS (Brazil, Russia, India, China and South Africa), as well as some other similar developing countries – Mexico and Turkey – also showing interesting growth rates and many business opportunities.
In this global view, what makes Brazil distinctive for investors?
The current situation – in both global and Brazilian economy – along with the current national political scene, presents a unique opportunity for foreign investors. Major investors around the world have their eyes on Brazil, expecting the current government stabilization. It is known that our potential is huge. In practice, what happens to the Brazilian situation is a combination of factors. Brazilian institutions work well independently, and laws and processes are generally respected, which is essential for foreign investors. In addition, the country enables high returns, either for its own development level or for the size of its population, especially that of the – current and potential – middle class.
From an economic point of view, how do you see the opportunities for investors?
That experienced instability is momentary and necessary for the future governance and transparency required at a global level. If we analyze the Brazilian economic cycle, we note that this downturn is being precisely marked by the political crisis itself. Since this political crisis is temporary and will come to an end, there is an opportunity for a quick return on investment; the economy tends to soon return to a level similar to that of the rest of the world economy, with earnings opportunities. Brazil – at this scenario – is a very attractive country as it is going through not only one crisis, but two at the same time. And the companies able to take advantage of such moment will certainly be ahead of those who retreat from this particular time in Brazilian history.
What opportunities stand out for Canadian investors today?
Currently, different industries attract the Canadian attention, but I highlight IT, especially in healthcare and banking, as well as education. It is a time where those who take advantage now will not regret at all in the future.
Source: CCBC News talked to Diego Ured about investments opportunities in Brazil.