Rio de Janeiro city is regarded as a Beta World city. It is the capital city of the state of Rio de Janeiro. Rio de Janeiro is the 2nd largest city in Brazil. It also comprises the 3rd biggest urban area in South America. The state has been the capital of Brazil for a long time now. Henceforth, it has attracted a lot of attention and investments globally.
However, after feasting an all-time high for direct foreign investments in December 2010, years of unsatisfactory declines just sprung back up in December 2015, as reported by the Central Bank of Brazil. Investors come to the country because they know that crises are cyclical. In view of the foreign investor, this crisis is over. Thus they are looking at Brazil, and particularly Rio, as an interesting option again.
Investment consultant, Paulo Bittencourt, informed a news provider, that he believes 2016 will prove to be a golden year for Rio’s economy. Even with political ambiguity, the amount of investors looking to carry trade will increase. These are large fund investors, who are always looking for opportunities to ‘foray the henhouse’ in the monetary market.
The Famous Campos Grassland
The South Brazilian Campos grasslands also known as Campos, is a unique ecology. Situated in the southernmost part of Brazil, the bionetwork is rich in plant species, being more varied than woodland environment in the same area. The weather is tropically humid, with rainfall frequently dispersed around the year.
Paleopalinological studies show that this Campos was present in the province before forest. Owing to their geological location, in an intermediary region, these grasslands demonstrate a mixture of perennial grasses and a huge variety of other botanical families with clement species.
Rio de Janeiro Economy
Rio has fascinated many oil businesses with the detection of oil in the Campos grasslands basin. Many international oil corporations such as Shell and Esso have their offices and some even their headquarters in the city. The telecom establishments boast corporations such as Oi and Embratel.
The service segment is subjugated by the banking sector which is a dynamic part of the economy. Plus, the currency of Brazil has not been far away from stable. The city’s stock exchange ‘Bolsa da Valores’ is the subsequent most active stock market in Brazil.
Real-estate prices are relatively less than other major cities globally. Business experts argue that Rio will become the international center of the world in the real estate sector. Rio’s real estate sector is anticipated as the most promising industry in the future. For overseas investors, huge investment prospect lies in constructing homes, particularly on the beachside, and renting it out. This will give in immense earnings over the years and investors will get good value on their investment.
Moreover, building commercial and residential properties requires employment of a skilled man force. However, investors can procure highly skilled and educated labor easily and inexpensively. On the whole, economy of Brazil in the global market is improving persistently.
Nevertheless, the Brazilian government initiative to promote tourism in the country is highly contributing to the economy improvement. The advent of tourism industry is huge and has amplified over the years. The city carnival is world-famous and attracts tourists globally. In addition to that, the handsome mountains and stylishly juxtapose glorious beachfront lure tourists all the way more. Thus, there is a great opportunity for investing in accommodation facilities such as luxurious beachside villas, leisure centers, golf course and more.
Moreover, the benchmarking global sports events - the 2014 FIFA football World Cup and the Olympics in 2016 boosted tourism to its peak.
The fashion sector of the city is one of the leading creative industries in Rio and thus assures good returns on investments. The agricultural sector is also finely established. The city grows diverse crops like sugar cane, oranges, rice, potatoes, pineapples and a lot more. The cultivation and export of fine quality coffee beans is gaining significance.
It can be concluded that Rio offers distant investors manifold investment options in its miscellaneous sectors. The fact that the city has great infrastructural and transportation facilities throughout the city aids hugely to the investment sector.
Rio Oil Sector
It is impossible to dissociate the state’s economy from the oil and gas sector. Rio is amongst the foremost producers of petroleum and gas products in Brazil and contributes more than half in the overall production. Majority of the petroleum comes from the shores of the gigantic coastline. Even though oil is mined from the shores, there is range for investigating new oil reserves.
IBRE researcher Lia Valls remarkably notes that the state leaped from 9th to 3rd rank among exporting states between 2000 and 2008. Moreover, although the oil business is capital concentrated, labor efficiency in has risen.
Rio Oil Wealth: A Blessing in Disguise
Despite the progress in recent years, the state still needs healthier institutions to avoid the mishaps of the past and assure continuous growth. Economists Fernando de Holanda Barbosa Filho and Samuel Pessôa perceive substantial risk unless the state positions in place policies to deal with oil revenue volatility. The revenue from oil is so volatile due to international oil prices and the fact that oil is a nonrenewable resource. Hence, they propose conception of a fund that regulates savings and flow of oil revenue.
A sole focus on development of oil production and exports will make the city vulnerable to recessions, market fluctuations and changes in economic policies.
Nonetheless, facts report that the city is adopting a smart recipe for GDP growth by amalgamating education and technology.
Giving Back Good
Alongside the many projects congregating on GDP growth goal, there are some good deed projects for those most in need of income and incentives for education - the slum dwellers.
The city established incorporation of state and municipal activities to complement central assistance programs that give poor families a monthly allowance accustomed on their children opting for education and parents partaking in school activities. In addition to, efforts are being made to chart and perk up admittance to services and municipal infrastructure.The significance of lengthening the formalization of the slum population is not just to promote the economy, but also add to the expansion of safety.
Looking back at the economy of Rio De Janeiro, to the stage where it has advanced today, seems like a dream. From the year 2000, per capita income is more than double. Violence is lesser, mainly because of the mollifying police force units set up in 28 city slums. Public education now has a new administration model. Urban and state administrations have put their finances in order.
The breakthrough of deep sea oil in 2007 was the best factor and the choice to host the 2014 Football World Cup and the 2016 Olympics has been a super driving force. Rio government has taken leads of the visibility from the sporting events to magnetize businesses.