Commercial investment in Brazil to increase following IMF statement?
Date added: 6th August, 2010 at 13:42
(view all articles from August, 2010)
Categories: Economy
The International Monetary Fund (IMF) has praised Brazil's rapid recovery from the financial downturn, acknowledging that further public and commercial investment in infrastructure was needed in order to maintain the country's economic health.
In a Public Information Notice, the body said the nation had given a "remarkable performance" over the past year, citing the government's "robust policy framework" as a key factor in this.
Expanding at an average annualised rate of 8.9 per cent over the last 12 months, the economy has rebounded from a contraction of 4.8 per cent seen between the fourth quarter of 2008 and the end of March 2009, the organisation reported.
According to the IMF, Brazil recovered from the global recession more quickly and earlier than most other countries due to investment, overseas demand for commodities and domestic consumption.
Additionally, responsible fiscal policies alongside a firm financial system, tight control over inflation and the flexibility of the exchange rate have led to "macroeconomic resilience", the body continued.
Foreign investors have brought a strong flow of capital to the country, the organisation noted, attracted by the potential for expansion and comparatively high interest rates.
Meanwhile, domestic demand's contribution to growth in 2010 is projected to rise by 7.1 per cent compared with last year, while private and public consumption is set to increase by 9.1 and 8.3 per cent respectively.
The authority's plans for further development, which lean strongly toward infrastructure investment, were backed by the IMF.
According to recent reports, the country will be ploughing money into transport links, airports and hotels as it prepares for the 2014 World Cup and 2016 Olympic Games.
Indeed, sports minister Orlando Silva was quoted by Xinhua as saying $18.7 billion (£11.8 billion) would be invested in infrastructure in time for the football tournament, with funds coming from both public and private sources.
Elsewhere, the Miami Herald said that a proportion of the resources would go towards ensuring there was enough accommodation available in the country to cater for the 600,000 foreign tourists and three million Brazilian visitors that the politician estimated would travel to see the games.
The IMF also highlighted the increase in the amounts lent to the housing sector by financial institutions in Brazil, stating that "its impacts on overall demand growth warrant special attention".
As the economy rapidly expands, the possibility of it overheating becomes a risk, but the body welcomed the leaders' withdrawal of monetary policies designed to stimulate growth.
For anyone wishing to invest in the full potential of Brazil, Property Bond Brazil has an excellent array of opportunities for commercial investment in Brazil.
Related Articles
Could commercial investment in Brazil rise as car sales soar?
Date added: 4th August, 2010 at 09:22
(view all articles from August, 2010)
Investment in Rio 'could bring greater income'
Date added: 27th July, 2010 at 13:42
(view all articles from July, 2010)
Investment in Brazil 'stays strong'
Date added: 6th July, 2010 at 14:39
(view all articles from July, 2010)