Economic recovery boosts potential for investment in Brazil
Date added: 17th February, 2010 at 15:53
(view all articles from February, 2010)
Categories: Economy
The global economic recovery could have boosted the potential for investments in Brazil.
Although the worldwide recession hit all countries, Latin America was less affected than most regions as it had learned lessons from previous economic crises, it has been stated.
Pamela Cox, vice president for the Latin America and the Caribbean region at the World Bank, said in an article for the Latin Business Chronicle that the global economic recovery was now underway.
She commented: "Brazil, like other large emerging economies, has been helping lead the world's recovery since the beginning of last year. Brazilian gross domestic product is expected to grow more than five per cent this year."
Her claim is backed up by the International Monetary Fund (IMF), which suggested that making an investment in Brazil could be a safer option than investing in some other countries as its economy is set to grow by 4.7 per cent this year.
IMF figures showed Brazil's economy was one of the least affected by the recession and that it would be one of the quickest to recover.
On top of the 4.7 per cent predicted growth for 2010, the IMF expects there to be a further increase of 3.7 per cent in 2011.
Ms Cox said that a year ago the prospects for the region had looked "pretty gloomy", but that the area had weathered the downturn better than some other more established economies as it had improved monetary and fiscal policies.
This, coupled with the implementation of sounder financial regulation and supervision resulted in Latin America's economy performing better than Japan, Europe and the US, she explained.
Ms Cox added that although Latin America did not emerge from the recession unscathed, it was left in a less vulnerable position than it had been for much of its modern economic history.
"We at the World Bank are convinced that the road to recovery is shorter for Latin America than for other nations," she said.
Brazil is in a better position than most other countries in Latin America as it is soon to benefit from increased numbers of tourists visiting the country.
This could mean making an investment in Brazil may be a good option as the country's economy is likely to continue to grow over the next few years.
The country is to host the football World Cup in 2014 and the Olympic Games in 2016, meaning more people are expected to holiday there, driving up tourism revenue and potentially making investments in Brazil more profitable.
Investors who are considering buying property in Brazil have been advised to be quick.
Glauco Chris Fuzinatto, director of UK and Ireland for the Brazilian Tourist Office, said house prices in the Latin American country were increasing, with the North East of the country particularly booming.
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