Under the leadership of President Luiz Inácio Lula da Silva, Brazil has become a hot spot for multinational companies

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Companies are optimistic about the expansion of the domestic market and improvement in sales

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Brasil 247 – A sense of optimism has been observed among multinational companies operating in Brazil, driven by reduced inflation expectations and positive prospects regarding Tax Reform and the fiscal scenario. According to a survey conducted by the newspaper Folha de S. Paulo with one hundred multinational companies during teleconferences in May and June, 80% of executives expressed positive comments about their operations in the country. The remaining 20% mentioned concerns or complaints. The favorable climate is reflected in areas such as food, technology, agricultural supplies, and pharmaceuticals, with an expectation of increased sales.Under President Luiz Inácio Lula da Silva, various multinational companies are celebrating improvements in inflation rates, purchasing power of the population, and prospects of a favorable agricultural harvest, along with the growth in Chinese demand in the context of post-Covid reopening. Positive statements from executives stand out, such as Tim Cook, CEO of Apple, who reported "stellar" performance in emerging markets, including record-breaking quarters in Brazil, India, and Malaysia. Other examples include statements from Marcelo Rabach, CEO of Arcos Dorados, who described an extremely positive first quarter, and companies like Kellogg, Hormel Foods, AB Inbev, and Brown-Forman, which reported sales growth or expressed confidence in the coming months.Market analysts also have a more optimistic view of Latin America as a whole. Karina Saade, Director at BlackRock Fund in Brazil, highlights the optimism of global investors due to the region being more advanced in its interest rate cycle, with central banks closer to the end of monetary tightening. She mentions that the outlook is for a decline in interest rates, in contrast to most developed countries. Additionally, the region attracts interest for investments related to energy transition, such as lithium and copper exploration, adoption of solar energy, and the nearshoring movement – production closer to consumer markets.According to the survey, the overall climate is one of confidence, with multinational companies noting a promising Brazilian market and expecting growth in sales in the coming months.