BY CHRONICLE STAFF
“It is an expensive place to do business,” Michael McKenzie, managing director of treasury and securities services at JP Morgan said. The Sao Paulo-based McKenzie was speaking at the invitation-only LT CFO event in
The high costs were driven by a combination of factors, including a high tax burden and bureaucracy costs, he said.
Roberto Palmaka, a Brazilian native who is senior finance director for
Cheryl McDowell, vice president of finance and administration for
The tax burden adds up. “The benefit burden in
“The cost per head in
EDUCATION & INFRASTRUCTURE
McKenzie, Palmaka and other executives also mentioned education as a key challenge. The scarcity of well-skilled labor and low productivity limit potential growth, McKenzie pointed out. (See also Brazil: The Education Challenge).
Meanwhile infrastructure also remains a major problem, executives pointed out.
Despite those challenges, through,
Macroeconomic stability (including domestic demand), natural resources and political stability are key factors behind continued growth, McKenzie pointed out.
And that spells good news for companies selling to Brazilians such as Germany-based Volkswagen. It expects to see total car sales in Brazil grow from 3 million units last year to 4.4 million by 2018 and is investing 2.3 billion euros (US$3.1 billion) during the next four years to expand capacity in the South American country, said Oliver Harmann, chief financial officer of the VW Group Latin America.
Volkswagen is the second-largest car vendor in
Meanwhile, technology companies like Microsoft are also looking at metrics where
Alberto Bernal-Leon, head of research for Bulltick Capital Markets, likened
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