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Research - JULY 29, 2020

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Brazil’s infrastructure to play key role in post-pandemic recovery

by Kali Persall

Experts predict that foreign investments in Brazil’s infrastructure sector will play a pivotal role in the country’s post-pandemic economic recovery, according to a virtual webinar hosted by the Brazilian Trade and Investment Promotion Agency on the positive outlook for Brazil’s infrastructure industry.

“Many of Brazil’s economic conditions are favorable at this very moment, despite the COVID-19 crisis,” said Martha Seillier, the investments partnerships program’s special secretary of the secretariat. “Brazil has an average internal rate of return [IRR] for infrastructure projects of around 10 percent, which is not seen in any advanced economy — and is even hard to find in emerging markets.”

Seillier added: “Additionally, real interest rates have dropped close to zero, which will reduce borrowing costs and enhance the credit market in general.”

The roundtable discussion noted that infrastructure has been, and will continue to be, a signif

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