Brazil will struggle economically for the best part of 2016, according to the Brazilian government, and many economists around the world. The recession has deep roots, and financial experts like Bank President Ricardo Guimarães think that several things have to happen before Brazil is financially healthy again.
Guimarães thinks the country must get rid of the unnecessary tax code that makes businesses spend more than 2,600 hours a year to pay what the government says they owe. Guimarães doesn’t think the Rousseff administration will be around long enough to make that happen in 2016, but he believes the Summer Olympics might give the country the boost it needs to get back on track economically speaking.
The Summer Olympics will pour billions of dollars into the Brazilian economy, and Mr. Guimarães thinks that money could be the catalyst for a rebound. Guimarães knows a lot about sports. His BMG Bank sponsors tennis, soccer and volleyball athletes and teams. According to an R7.com article, Guimarães is the godfather of Brazilian soccer.
BMG Bank under Ricardo’s leadership has invested millions in soccer, and that investment has made the bank popular with soccer players and the fans. The BMG Bank logo is visible on game days throughout the country, and Guimarães couldn’t be happier. Bank profits have more than doubled the last two years in spite of the recession.
Ricardo Guimarães believes that the Summer Olympics will have a positive impact on Rio de Janeiro’s economy as well as its infrastructure. Rio may be not be fully prepared for the games, but Guimarães thinks the city will make money for the country during the event. The committee in charge of making the Olympic Games successful has enough entrepreneurs in place to make a difference, but some Brazilians are concerned because some of those entrepreneurs are not proactive enough to efficiently get the job done.
An article about Brazilian entrepreneurs was recently posted by R7.com. Ricardo Guimarães thoughts were part of that article. Brazilian entrepreneurs do lack the ability to be assertive in certain situations according to a survey done by Endeavor, a Brazilian firm, and Meta, a British research firm. The study discovered four distinct types of entrepreneurs and not all of them have the desire to be proactive in certain situations. Guimarães said that cleaning up Rio’s favelas is a good example of that lack of proactivity.
But in spite of the challenges, Ricardo Guimarães, the sports aficionado, and financial expert expects the Summer Olympics to be a success and a money maker for Brazil. Most of 2016 will be behind Brazil in August, but the money that the games generate could be the foundation a fourth quarter turn around, according to Guimarães.