RIO DE JANEIRO, 14 June 2024 (WAM) -- In statements during the last day of FII Priority Summit in Rio de Janeiro, Brazilian Vice President Geraldo Alckmin hailed the recent positive economic developments in his country, pointing to a declining inflation rate and a rise in GDP.
“Brazil has seen a dramatic decline in unemployment, leading to improvement in incomes for citizens. This marks the strongest income improvement since the implementation of the Real Plan. [Brazilian currency],” Alckmin told Gulf region business leaders and investors. Since Lula is travelling to Italy to attend the G7 Summit, Geraldo Alckmin is the acting president of Brazil.
As Brazil's risk rating improves – reflecting growing investor confidence in the country's economic stability and ability to meet its obligations – the vice president addressed a global audience in Rio de Janeiro. He emphasised the Lula administration's continued commitment to fiscal responsibility and tax reform to ease taxes on investments and exports. “Studies show that in 15 years, tax reform alone could boost GDP by 12%, increase investments by 14%, and exports by 17%. It is an extremely important structural reform,” stated the acting president.
In addition to positive signals to investors, Alckmin emphasised that the Brazilian government is committed not only to the market but also to sustainable development and social welfare. “Brazil is committed to inclusive development, leaving no one behind. Unfortunately, we had 30 million people suffering from food insecurity. We are advancing significantly. Our development is sustainable, with a commitment to combating climate change and preserving the Amazon,” stated the Brazilian vice president.
Reflecting on the event's theme, "Investing in Dignity," Alckmin told the attendees that "development is the new name for peace," highlighting that "true peace exists where there are jobs, income, and a dignified life."
Business leaders from UAE
The Brazilian vice president's message resonated height with UAE businessmen attending the event in Rio de Janeiro. For Michael Majdalany, who manages Patria’s Middle East office in Dubai, Brazil presents prosperous business opportunities. "There is a tremendous opportunity in Brazil. It serves as an agriculture leader and breadbasket to the world, a geopolitical safe harbour, and more broadly, Latin America has recently become a top global FDI destination”, he stated.
Majdalany relayed a message back to the UAE, highlighting the palpable buzz and genuine desire to strengthen ties with these dynamic growth markets. “As the Global South and the BRICS nations become a stronger voice on the global stage, and investment ties deepen” events like the one that took place in Rio de Janeiro bring the Brazilian and Middle Eastern markets closer together.
Pablo Augusto & Renan Leoncio