Brazil’s digital transformation is driving both domestic economic growth and global trade, reinforcing its position as the largest economy in Latin America. Digital payments and the expanding e-commerce sector are at the forefront of this shift. In 2023, retail sales grew by 3.2% from the previous year, defying expectations and highlighting the strength of Brazil’s middle class, which makes up 61.4% of the population. Projections suggest that two-thirds of Brazilians will shop online by 2027, with the e-commerce market set to reach US$125.68 billion by 2029.
In the business-to-business (B2B) sector, digitalisation is enhancing operational efficiency. A 2020 McKinsey report revealed that 68% of Brazilian companies prefer digital interactions with suppliers, and over half have improved their business operations by adopting online sales models. This shift has been accelerated by real-time payment platforms like PIX, which simplify cross-border transactions and allow businesses to expand into global markets.
Brazil’s strong position in international trade is also being supported by digital payment solutions. In 2022, Brazil’s trade with its top partners, the United States and China, totaled US$238.7 billion. Brazil’s abundant natural resources, such as soybeans and iron ore, make it an essential global supplier, and digital payment methods are streamlining trade logistics.
The government’s push to simplify regulations and reduce taxes for foreign businesses has made Brazil an attractive destination for investment. Moreover, with significant investments in IT and telecommunications infrastructure, Brazil’s digital economy is set to expand further.
As Brazil continues to innovate in the digital space, both its domestic economy and international trade prospects are becoming more robust, creating opportunities for businesses and foreign investors to tap into this thriving market.