Investors into the Brazilian real estate market will be heartened by the raft of positive news emerging from Brazil with regard to the economy, GDP growth and the boom in Latin Americas largest economy.
The Brazilian Government has released economic data showing a 1.9 per cent increase in real GDP in the second quarter. This has led to Goldman Sachs and BNP Paribas revising their original growth forecasts upwards.
Analysts were predicting growth of 3.5% for the year in July 2009, but have now revised this to 4 %, according to a weekly central bank survey of about 100 economists. They also forecast the economy to only shrink 0.16% this year, down from 0.73%. Brazil’s economy has rebounded from the global financial crisis and Brazil has defied analysts’ previous forecasts. The figures bode well for 2010 stated the Brazilian Finance Minister Guido Mantega.
Mantega adds the growth in Brazil is based upon positive trends in employment, services and industry. The Central bank of Brazil states that the new figures confirm that Brazil has already come out of recession.
A major factor in the quick turnaround experienced by the Brazilian economy is a series of measures introduced by the Government to incentivise the domestic real estate market and construction industry. Minha casa, Minha Vida has been a huge success and has contributed to the 2.1 per cent increase in domestic spending over last months figures.
Minha Casa, Minha Vida has provided an impressive R$60bn into Brazils affordable housing market, and with the construction industry accounting for 5 per cent of Brazils GDP this has given a valuable boost to employment and earnings.
The Minha Casa, Minha Vida scheme will receive another 10 Billion Reais in 2010 from the Federal Government. Brazil has a housing shortage estimated at 8 million units and this scheme was bought in by the Government to provide affordable housing and to stimulate the construction industry downturn caused by the worldwide economic crisis.
Following the French and German economies, Brazil is the latest Group of Twenty economy to emerge from recession. Germany, the Euro regions largest economy, and France, the second largest, both expanded 0.3 percent in the period.
Leslie Richards is an investment consultant to Brazil land Invest and wrote this piece on the Brazilian economy and affordable housing sector. The author invites you to visit Brazil Land Invest for more information about investing in Brazilian land in Paraiba, North East Brazil.
Leave a comment