Good Reading for Brazil Investment
Brazil recently released its Q2 economic figures and they make very good reading. With strong economic growth, salaries on the rise and controlled inflation, Brazil is steaming ahead as a top investment destination.
2010 got off to an exceptional start for Brazil and the trend has continued through the second quarter when the country’s GDP grew by 1.2%. This figure hides a bigger picture – over the last four quarters, Brazil has experienced GDP growth of 5.1%.
Since Q2 last year, all industrial activities in Brazil have seen double-digit growth. The largest expansion has been in civil construction (16.4%) with mining and quarrying coming a close second with a growth of 14.1%. Civil construction is booming on the back of infrastructure projects and the massive investment in the Minha Casa Minha Vida (MCMV) social housing programme. This sector will undoubtedly experience further big growth as Brazil continues with its ambitious building projects – MCMV alone intends to build 3 million properties by the end of 2014.
Unlike many developed countries where consumer spending cannot get off the ground, household expenditure in Brazil continues to grow. The 6.7% year-on-year quarterly rise is the 27th consecutive increase, proving beyond doubt that consumer spending is big business in Brazil. Powering household expenditure are growing salaries, which saw a year-on-year increase of 7.3% in Q2.
And inflation also brings good news. Brazil’s rates are registering lower increases than expected. After worries in late spring that inflation might soar above the Central Bank target, the consumer price index is now in check. Inflation rose by just 0.04% in July bringing the rate to 4.49%.
The figures for investment in Brazil also make good reading – Q2’s investment rate is the second highest Q2 level since records began in 2000. Investment represented almost 18% of GDP, reflecting the huge foreign interest in investment in Brazil.
But investment isn’t just pouring into Brazil; the boom is also working the other way. 3G Capital, owned by one of Brazil’s most influential entrepreneurs, Jorge Paulo Lemann, has just put in an offer to buy Burger King. Unless another company betters 3G Capital’s offer, Burger King, a global fastfood icon, will ‘become’ Brazilian in early October. At Obelisk International, we believe that the 3G Capital bid is yet another example of Brazil’s increasing economic presence on the international business stage.
By current international standards, Brazil is having a fantastic year and looks set to end 2010 as one of the best global economic performers. Against this scenario, Brazil offers endless investment opportunities and Obelisk International’s investment recommendations also make for some very good reading.
Contact Obelisk International on 0034 952 820 319. Via email: info@obeliskinternational.com or visit our website: www.obeliskinternational.com.
2010 got off to an exceptional start for Brazil and the trend has continued through the second quarter when the country’s GDP grew by 1.2%. This figure hides a bigger picture – over the last four quarters, Brazil has experienced GDP growth of 5.1%.
Since Q2 last year, all industrial activities in Brazil have seen double-digit growth. The largest expansion has been in civil construction (16.4%) with mining and quarrying coming a close second with a growth of 14.1%. Civil construction is booming on the back of infrastructure projects and the massive investment in the Minha Casa Minha Vida (MCMV) social housing programme. This sector will undoubtedly experience further big growth as Brazil continues with its ambitious building projects – MCMV alone intends to build 3 million properties by the end of 2014.
Unlike many developed countries where consumer spending cannot get off the ground, household expenditure in Brazil continues to grow. The 6.7% year-on-year quarterly rise is the 27th consecutive increase, proving beyond doubt that consumer spending is big business in Brazil. Powering household expenditure are growing salaries, which saw a year-on-year increase of 7.3% in Q2.
And inflation also brings good news. Brazil’s rates are registering lower increases than expected. After worries in late spring that inflation might soar above the Central Bank target, the consumer price index is now in check. Inflation rose by just 0.04% in July bringing the rate to 4.49%.
The figures for investment in Brazil also make good reading – Q2’s investment rate is the second highest Q2 level since records began in 2000. Investment represented almost 18% of GDP, reflecting the huge foreign interest in investment in Brazil.
But investment isn’t just pouring into Brazil; the boom is also working the other way. 3G Capital, owned by one of Brazil’s most influential entrepreneurs, Jorge Paulo Lemann, has just put in an offer to buy Burger King. Unless another company betters 3G Capital’s offer, Burger King, a global fastfood icon, will ‘become’ Brazilian in early October. At Obelisk International, we believe that the 3G Capital bid is yet another example of Brazil’s increasing economic presence on the international business stage.
By current international standards, Brazil is having a fantastic year and looks set to end 2010 as one of the best global economic performers. Against this scenario, Brazil offers endless investment opportunities and Obelisk International’s investment recommendations also make for some very good reading.
Contact Obelisk International on 0034 952 820 319. Via email: info@obeliskinternational.com or visit our website: www.obeliskinternational.com.
Labels: Brazil, Brazil property investment, Brazilian real estate, investment, investment in Brazil, MCMV, Minha Casa Minha Vida, property
posted by Alison Kane at 3:54 pm
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