Brazil is the ninth-largest economy in the world and the third-largest in the Americas. The country has been through numerous recessions and crises. Still, the national economy has always bounced back quickly. And, it owes its survival to the versatile spectrum of industries and markets consistently ripe for investment.
As the COVID-19 pandemic rages on, the Brazilian economy is showing clear signs of recovery. If there was ever a perfect time for accessing its market, it should be now!
Overview
Brazil’s economy is close to winning its long-lasting battle against collapse. The country has already faced several years of economic recession and the destructive side effects of the COVID-19 pandemic. And, while the journey to recovery appears long and irregular ahead, the economic forecasts are positive.
For 2021, the International Monetary Fund (IMF) projected a 2.8% growth in Brazilian GDP, which is well above the regional average. Also, the latest amendments to pension laws and tax reforms should boost Brazil’s efforts to recover quicker than expected.
In this optimistic economic environment, expanding or opening a business in Brazil should be a rewarding option. However, entering the Brazilian market may be difficult without local support. The bureaucracy of Brazil is famous for making local employment time-wasting and difficult.
What are the challenges of employing Brazilian workers?
Brazil reacted late to the 2020 catastrophe and only decreed the state of public calamity in June 2020. Elsewhere in the world, the pandemic was already on a rampage for more than six months. Unfortunately, it was too late for thousands of Brazilians and almost too late for the economy as well.
Most industries came to a halt. As a result, countless companies had to close shop on the spot. For some, telemarketing became a business-saving solution. However, for many others, working from home wasn’t an option. As early as July 2020, 7.8 million people in Brazil had lost their jobs. More have followed the same unfortunate path ever since.
One of the side effects of the COVID-19 pandemic is that many professional employees in Brazil have lost their jobs. It is a lamentable fact, but one that foreign investment can overturn.
The companies that would foray into the Brazilian market would find a deep pool of talented workers from a broad range of professions. They are skilled and experienced. Above all, they are ready to work.
The main issue when employing Brazilian workers is overcoming the country’s thick and cumbersome bureaucracy. Unfortunately, many foreign investors flee after having to deal with local laws and regulations themselves.
The best choice for any foreign investor, regardless of industry, is to collaborate with local consulting companies. These firms are specialized in carving quick and easy paths through the daunting mountain that is the Brazilian bureaucracy.
How to set foot on the Brazilian market
Opening or expanding a business in Brazil is often easier said than done. As is the case with every foreign investment, you require local expertise and support. For instance, local experts in law and accounting can be your ideal collaborators for investing in the Brazilian market.
At Wide Brazil People, we take great pride in helping investors from all over the world access the Brazilian market and hire workers remotely. We have a highly experienced team of lawyers, accountants, and HR specialists ready to provide you with optimal Employer of Record services.
Contact us today here for more information and bespoke assistance
