Despite the worldwide recession, Brazil’s economy is going from strength to strength and the country’s population of high-net-worth individuals (HNWIs) represent a lucrative opportunity for the Bahamian financial community.

That was the message from Flavio Peppe, partner at Ernst & Young Sao Paulo, who addressed Bahamas Financial Services Board (BFSB) members today in a presentation held at the British Colonial Hilton, Nassau.

“We have had strong and consistent growth in 2010. There is a huge amount of investment flowing through Brazil,” said Peppe. “We need to take advantage of the momentum we have in the economy.”

Brazil’s gross domestic product grew 7.5 per cent in 2010 and, according to the World Economic Forum, the country is expected to become the world’s fifth largest economy by 2020. The economic boom is due in part to Brazil’s abundance of raw materials, stable banking sector and growing middle class, according to Peppe.

“For a country that was a very poor country 20 years ago, we are doing very well and we are trying to do better,” he continued. “There are many opportunities. The asset managers in Brazil sometimes cannot handle all the business they have.”

Brazil’s asset management industry is one of the 10th largest in the world and represents 45 per cent of the country’s GDP. The country also has the fourth biggest stock exchange in the world.

Over the past year, the financial sector has been fostering links with this new, growing market. In May 2011 representatives from the BFSB attended the Brazil Investment Summit held in Sao Paulo and in June Copa Airlines launched the first direct flight between Nassau and Panama.

Arrivals from Latin America rose by 40 per cent between May and June of this year, when compared with the same period in the previous year, and seven per cent of these flyers were from Brazil. Ministry of Tourism and Aviation officials predict that in its first year the new Panama route will bring more than 14,500 visitors to The Bahamas.

cboal@dupuch.com