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Wednesday, June 09, 2010

Why Invest in Brazil?

Why Invest in Brazil?
Brazil is quite possibly the most exciting investment market in the world today. It is currently the world's 9th largest economy and accounts for over 40% of South America's total GDP. After
achieving Investment Grade in 2008, Brazil is widely predicted to be amongst the economic leaders of the future, along with Russia, India and China.




Manufacturing industries in Brazil are thriving and the latest oil and gas discoveries, combinedwith the fact that Brazil is already the leading producer of ethanol in the world, has firmly catapulted the country to energy self-sufficiency.

Interest rates are at an all-time low and inflation is stable. The private sector is thriving and investment is flooding in.
With this rapid pace of development in the Brazilian economy there is a growing national housing shortage. It is estimated that there is a current deficit of 8 million units, and Brazil's growing middle classes (expected to increase by 64% by 2015) are further pushing up demand.
Couple this with the increasing availability of mortgage products, which is opening up the market to millions of Brazilians who have previously been unable to get onto the property ladder and you have a remarkably strong onward sales market with the potential for great capital gain.




In addition to all of this Brazil has been selected to host the 2014 Football World Cup which will have a direct, positive impact on the country's and host cities' infrastructure, tax base, tourism stream and hospitality revenues. Brazil's GDP will not only experience substantial gains in 2014, but will also show gains in the following years, due to the pay off of public and private investment in facilities and infrastructure.
Why North-East Brazil?
Widely predicted to be amongst the economic leaders of the future, along with Russia, India and
China
Huge improvements brought by President Lula, including a decrease in inflation to an all-time low of 5.7%
Expected to become self-sufficient for oil within the next year
Increase of thriving manufacturing industries
Annual property price increases of over 20% in the North-East
Foreign investment actively encouraged
Favourable currency exchange, making it cheap for foreigners to invest
Low property maintenance costs
Cost of living a mere 20% of the UK/Europe Expanding internal air network and direct flights to Europe and the US Government dedicated to foreign tourism - annual tourist numbers have risen by almost 100% since 2005 and over 250,000 new jobs have been created for the Brazilian market
Located just south of the Equator, offering year round sunshine, with average daytime temperatures
of 27ÂșC
Great natural beauty with fantastic scenery and over 7,000 km of beaches
Friendly nature of the Brazilian people - rich culture, vibrant cities, carnivals and music
Low international risk of terrorism or war

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