Igor Cornelsen Explains The Economic Situation Of BrazilAugust 16, 2019 - Author: steph
Igor Cornelsen spent the first 25 years of his professional career as an executive in the Brazilian banking system. He was an executive at multiple banks. This includes Multibanco, where he was the chief executive officer. He was also once an economic policy advisor to Brazil’s Ministry of Finance. He became an entrepreneur in 1995 by launching an investment firm, Bainbridge Investments. He manages his client’s money using his tried-and-true investment strategies.
Now living in South Florida, Igor Cornelsen formally retired in 2010. However, he still provides financial advice to people he knows. He can often be found on golf courses where he is known to dispense financial wisdom. This includes helping people invest in Brazilian companies. He says there is a lot of opportunity as an investor in Brazil but it is a tricky market to navigate.
Rules and regulations about investing are complex in Brazil. There is also what he describes as “cultural oddities” to take into account. The Brazilian economy has struggled to recover from the global financial crisis of 2008. There are some signs that government reforms are having an effect, though, and things are looking a bit more promising.
Soon after the financial crisis, government reforms helped Brazilian GDP grow by 7.5 percent in 2010. However, GDP slowed to just 0.9 percent in 2012. Brazil was led by President Dilma Rousseff, a populist. His reforms ended up damaging the Brazilian economy. Igor Cornelsen points out that in the banking sector only two banks didn’t experience a financial disaster. These were Banco Bradesco and Itau Unibanco.
The next president, Michel Temer, introduced highly-unpopular austerity measures. He ended up being impeached. Igor Cornelsen says new President Jair Bolsanoro has his work cut out for him as he also wants to enforce austerity reforms. If you’re an investor in Brazilian companies, he suggests keeping a close eye on developments.