ASSESSMENTS

Brazil's Industrial Heavyweights Are Stepping Back Into the Ring

Feb 14, 2018 | 15:28 GMT

The Brazilian economy is back in the black and may be headed to an even greater economic recovery this year.

The Petrobras corruption probe forced many firms to sell their assets and to undergo major operational restructuring.

(IStock Photos)

Highlights

Brazil emerged from a two-year recession last year, and it is expected to report even more robust economic numbers this year.
Many large companies involved in the Petrobras corruption scandal will soon regain easier access to credit after signing leniency deals with the country's authorities and undergoing major restructuring.
As the national economy enters a new cycle of recovery, the Brazilian Development Bank will resume its role as the financial guarantor underpinning the international expansion of the country's big firms.

It's been a tough couple of years for Brazil's "national champions." Implicated in a far-reaching corruption probe in 2014 that centered on Petroleo Brasileiro (Petrobras), the giants of Brazilian industry faced the full force of the law over illicit activities at home and abroad. But fast-forward to 2018, and the country's champions appear to be back on their feet. Brazil's economy exited a recession last year, and the country is likely to grow by even more this year. And now with major companies signing leniency deals with Brasilia and restructuring their businesses, large corporations may soon regain some of the clout they enjoyed beyond the country's borders....

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