Investment in Brazil to benefit from consumer growth?
Date added: 23rd February, 2011 at 10:24
(view all articles from February, 2011)
Categories: Economy
People making an investment in Brazil may be interested to know that one expert has said consumerism is the "key to growth" in the country.
President of GenSpring Family Offices, Miami-based Julie Neitzel told Finalternatives explained that many people in the nation are now of a wealthier demographic.
"They are youthful consumers, they are getting older and they are going to be buying more," she added.
Fernando Donayre, who founded INCA Investments and remains its chief investment officer, agreed with her, saying the country's demographics are a "powerful force".
Indeed the national Office for Geography and Statistics recently reported that real average income in the country saw the highest monthly yield last year since 2003 of R$1,490.61 (£550.53), rising 19 per cent over seven years and 3.8 per cent since 2009.
Also in 2010, the unemployment rate fell by 15 per cent, with 22.5 million people in jobs by December.
Ms Neitzel explained that as many as 50 million of the 190 million population are now middle class, noting that Chile is a country of only 16 million people.
"That is why you see the multinationals gong down there," Mr Donayre told the news provider. "Consumption is a very powerful long-term story."
Antonio Miranda of Compass Group in New York commented on the rules for those making an investment in Brazil, which are imposed by Comissao de Valores Mobiliarios – a similar organisation to the Securities and Exchange Commission.
He compared them favourably with other Latin American countries, noting Peru did not have enough regulations, while in Columbia they are not properly imposed.
"In Brazil, if you follow the letter of the law and understand your rights, we have found that CVM a great partner and enforcer of those rights," he stated.
Those wishing to invest in Brazil may want to learn more about the rules that will be imposed on them as the information source suggested Mr Donayre, a Peruvian who manages a $400 million hedge fund that focuses on Latin America, may feel more comfortable in the decisions he makes due to a familiarity with the laws and transparency that exist in the region.
"Brazil is the engine that really drives the Latin American investment environment," Mr Donayre said.
The expert gave the opening address at the Search for Alpha in Latin America conference of 90 finance professionals, many of whom believe that the increase in consumerism and a young population alongside low inflation is making investment in Brazil a good opportunity.
For anyone wishing to invest in the full potential of Brazil, Property Bond Brazil has an excellent array of opportunities for investment in Brazil. 
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