Glowing economic report on Brazil
Investment International, Oct. 19, 2009
The Global Economic Weekly for Latin America, published by Bank of America Merrill Lynch (BofAML), says it expects inflation to remain contained and drop below 4% by the second quarter next year and that the Central Bank of Brazil is likely to maintain interest rates at their current level of 8.75%.
BofAML concludes that there is “no evident overheating of domestic demand.”
On the financial front, Brazil also has plenty to be proud of. Moody’s recently awarded Brazil investment rating, making Brazil only the second Latin American country to achieve this. And earlier this year, Brazil’s huge foreign reserves meant it became a net creditor to the International Monetary Fund, a role usually reserved only for the world’s richest countries.
In terms of top sporting events, things could hardly be more bullish for Brazil. Probably the world’s footballing nation per se, Brazil is set to host the 2014 World Cup. Just two years later, Brazil will also host the 2016 Olympics. These world-class events guarantee Brazil a prime spot in the international limelight for years and will make a significant contribution towards the travel and tourism industry.
The BofAML report presents a series of key economic forecasts for Brazil including GDP growth, industrial output and consumer spending (private consumption). The list of figures makes bullish reading. BofAML predicts 5.3% growth for Brazil in 2010 with 4.5% in 2011. Industrial output in Brazil is expected to rise by 10.7% next year with consumer spending growing by almost 5%.
This bullish optimism - based on rock-hard facts - about Brazil adds further weight to Brazil as a property investment destination. The list of reasons why Brazilian real estate is currently one of the best buys anywhere is getting longer and longer. Or as BofAML would have it, property investment in Brazil is turning even more bullish.