Loving Brazil

At Obelisk, we're loving Brazil.

Understandably clients are asking us why we're so bullish about Brazil, why is it our top investment recommendation and in the words of Theo Paphitis, why should they invest their 'children's inheritance' in this country. Just take a look:

•Brazil is the 'B' in the Goldman Sachs BRIC acronym. Although all four BRICs (Brazil, Russia, India and China) are widely expected to rule the global economy by 2050, for The Economist, "Brazil outclasses the others".

•Brazil's economy is based on a strong export market dominated by numerous commodities (e.g. steel, food stuffs and biofuels) that is supported by an equally buoyant domestic market.

•Forecasts for GDP growth in 2010 range from 4.8% (OECD) to 5.3% (Bank of America Merrill Lynch). (The OECD expects a combined growth of 1.9% for all 30 OECD members in 2010.) A 4.5% increase is predicted for Brazil in 2011.

•Tourism is expected to reap massive benefits from the World Cup in 2014 (held at locations throughout Brazil) and the 2016 Olympic Games in Rio de Janeiro.

•Unlike many developed economies, Brazil is currently creating employment. In the first 11 months of 2009, 1.1 million jobs were created and the 7.5% unemployment rate is at pre-global recession levels.

•Brazil's mortgage market is relatively young. However, it is expanding rapidly as new products are introduced and interest rates fall. Interest rates currently stand at 8.75%, a historic low - rates were five points higher in November 2008.

•Between 2003 and 2008, extreme poverty was halved and Brazil's score of inequality (the Gini coefficient) is falling. A recent report in The Economist revealed that Brazil's Gini score is approaching that of the US.

For more information about investing in Brazil, click here to download Obelisk’s FREE Absolute Guide to investing in Brazil, which provides up to date and accurate information about investing in Brazil, including the buying process, investment costs and market risks.