• Home
•  » Property Investment News

Plenty to Celebrate in Brazil

Brazil's recent victory in the Confederations Cup gave millions of football fans cause for celebration this week. The triumph brings Brazilian football to the top of FIFA rankings, but this is not the only recent achievement Brazilians can be proud of. Economic figures released this week show that foreign investment interest, including property investment, in Brazil is more confident than ever.

Brazil's three victory goals against the US are just part of the icing on Brazil's very big cake. At a time when many countries are bracing themselves for poor growth figures for this year's second quarter, Brazil is busy steaming out of the global recession. The recent increases on the Brazilian stock exchange and in the currency exchange rate have led Credit Suisse to comment that there are "clear indications that the Brazilian economy has bottomed in the first quarter of 2009".

Gains on Bovespa, the Brazilian stock exchange, in Q2 this year were 39%, the highest quarterly increase in three years. Like stock exchanges the world over, Bovespa saw major losses last year, but Brazil's renewed economic impetus has led to investor confidence and as a result, the Bovespa index is riding high and expected to continue to do so.

Brazil's currency, the real, is also on a roll. Its exchange rate saw an increase of 19% from April to June and the real's gains this year are the second highest among the world's most traded currencies (after the South African rand). Analysts are optimistic that the real will continue to perform well this year. Some economists are even predicting that the real will advance to a rate of 2.10 per US dollar by the end of the year. This would be a fitting milestone for Brazil's currency which celebrates its 15th anniversary this year.

At the top of the game in football, stock markets and currencies, Brazil is catching the imagination of investors. According to Gustavo Franco, a partner at the Sao Paolo-based Rio Bravo Investimentos, "there's a degree of enchantment among international investors with the Brazilian economy". This enchantment is also applicable to property investment proving still further that Brazil is currently one of the best places in the world to buy property.

« Back

Other Property Investment News