But some financial experts aren’t convinced that the recession will continue with the force and upheaval it created the last two years. Experts like BMG Bank President Ricardo Guimarães recently told R7.com that Brazil will start to make a comeback in 2016 thanks, in part, to the Summer Olympics and China’s need for more Brazilian products.
China’s President Xi Jinping told R7.com that the Chinese government expects gross domestic product to grow at a rate of 6.5 percent each year for the next five years and that growth will give them the impetus they need to convert to a consumer based economy. That conversion will increase their need for Brazilian exports. Mr. Guimarães thinks the Chinese growth projection is a little high, but he does believe China will need more Brazilian products. He is basing that belief on a recent meeting between Chinese and Brazilian officials.
There has been a lot of speculation about how the Summer Olympics will impact the Brazilian economy. Some analysts say Brazil is not ready to host such an event. They say hosting the 2014 World Cup didn’t help the economy, and there is no reason to think the Olympics will be any different. But Ricardo Guimarães, in another recent interviewed with R7.com, said that more foreign investors will come back to Brazil because of the worldwide interest that the Olympics demands.
Even though Brazil has some issues to address, Guimarães thinks Olympic attention will help the economy recover starting in the second quarter of 2016. Guimarães also told R7.com that Brazilian entrepreneurs will bring the economy back to life in 2016 if they become proactive in spite of the current conditions.
Guimarães has always been proactive. It is in his genes. Antonio Guimarães, Ricardo’s grandfather, started BMG Bank in 1930. Back then the bank was known as the Land Credit Bank of Minas Gerais. CrunchBase.com posted an article about the Guimarães family and in that article, they called the family one of the wealthiest families in Brazil.
The Guimarães family interests go further than banking. They are also involved in mining and other business ventures, according to CrunchBase.com. The article went on to say that Ricardo has changed how the bank does business. He has turned the small bank into a banking phenomenon in Brazil through football sponsorships, and the people love and support him for his decisions.