Brazil Economic Growth Forecast Up

As the worldwide economy continues to fall back in light of the ongoing credit crunch and higher cost of oil, it seems as though the party is still continuing in Brazil. The International Monetary Fund (IMF) has revised 2008 growth forecasts for the Brazilian economy from 4.5% to 4.8%, which is no mean feat in the current economic climate!

While the 1980s were a torrid time for the Brazilian economy with hyper inflation, massive unemployment and an unstable political situation it is hard to recognise the same country today. Inflation is well under control, the political situation is now much more stable (since a coalition government was announced), the economy is growing and international trade relations have never been better. However, it is the proactive stance of the authorities which seems to have caught most attention, with overseas investors now welcomed with open arms.

The property market in the country can vary widely from area to area, but on the whole there have been great improvements across the board. The government have announced a massive infra-structure budget which is seeing more and more new property investment opportunities appearing – in regions such as Natal which for many years had effectively been cut off from the country’s growing prosperity.

Currently we are seeing a major marketing push behind Brazil’s tourist sector to encourage more visitors to Brazil and while the Rio de Janeiro carnival still attracts much of the overseas headlines, there is so much more on offer in Brazil. Recently we have seen the profile of the North East region of the country grow, with David Beckham announcing the opening of a David Beckham Football School in Natal – part of a substantial new tourist complex in the region.

Brazil is very much an overseas property hotspot of untapped potential, a country which continues to register on the radar of property investors.