This is the Year for Brazilian Investment
Brazil’s Finance Minister is set on between 4% and 5% growth for his country this year. Combining lower interest rates with greater private investment in Brazil, Guido Mantega claims that this is the year for Brazilian investment.
In an interview published in the economic weekly Istoe Dinheiro, Mr Mantega sets out his economic plans for Brazil during 2012. While he does not reveal his exact plans on public spending cuts, Mr Mantega is clear on where the opportunities lie this year – private Brazil investments.
Consolidated Accounts
Brazil’s President Dilma Rousseff has reportedly ‘ordered’ at least a 4% increase in GDP growth for 2012. This bold goal in the current global economic climate is, according to Mr Mantega, very achievable for Brazil.
His first step is to keep the budget surplus to 3.1% of the country’s GDP to protect Brazil against external economic turmoil. “Brazil has had a budget surplus for 12 consecutive years,” he points out, “and this surplus consolidates our position.”
Mr Mantega is well aware that Brazil isn’t immune to global downturn, but he believes the country can protect itself and dictate its own GDP growth. With this in mind, another measure is to continue to bring Brazilian interest rates down. Cut to 10.5% in January, the Selic interest rate is forecast to see decreases to single digits over the next few months.
Promoting Investment in Brazil
Along with a solid budget surplus and lower interest rates, the Treasury aims to actively promote Brazilian investment. 2011 saw record levels of foreign investment in Brazil, but according to Mr Mantega, things are about to get even better.
“2012 will be the year of investment in Brazil,” he said. The Brazilian government is aiming to attract public and private investment funds to Brazil to modernise its infrastructure and reinforce its industrial sector. The government is targeting the areas of logistics, energy and housing.
Social housing investment is a top priority. To this end, the Finance Minister recently met with representatives from Caixa and Banco do Brasil banks, and Brazilian real estate developers to request acceleration in the Minha Casa Minha Vida (MCMV) programme.
MCMV – the largest investment in property in Brazil – aims to build 3 million homes by the end of 2014 and the Brazilian government is keen for this target to be met. “The Brazilian construction industry has been one of the fastest growing in recent years,” explains Mr Mantega, “but in the government we believe that we can work faster to deliver units.”
Obelisk International, a major developer of social housing under the MCMV programme in north east Brazil, welcomes this fresh impetus from the government to push Brazilian investment. “It’s good news for all foreign companies investing in Brazil,” comments Gary Hardacre, CEO of Obelisk International, “because this will help promote and facilitate private investment in the country over the next year.”
Contact Obelisk International on 0034 952 820 319. Via email: info@obeliskinternational.com or visit our website: www.obeliskinternational.com.
Follow us on Twitter, Facebook and LinkedIn.
In an interview published in the economic weekly Istoe Dinheiro, Mr Mantega sets out his economic plans for Brazil during 2012. While he does not reveal his exact plans on public spending cuts, Mr Mantega is clear on where the opportunities lie this year – private Brazil investments.
Consolidated Accounts
Brazil’s President Dilma Rousseff has reportedly ‘ordered’ at least a 4% increase in GDP growth for 2012. This bold goal in the current global economic climate is, according to Mr Mantega, very achievable for Brazil.
His first step is to keep the budget surplus to 3.1% of the country’s GDP to protect Brazil against external economic turmoil. “Brazil has had a budget surplus for 12 consecutive years,” he points out, “and this surplus consolidates our position.”
Mr Mantega is well aware that Brazil isn’t immune to global downturn, but he believes the country can protect itself and dictate its own GDP growth. With this in mind, another measure is to continue to bring Brazilian interest rates down. Cut to 10.5% in January, the Selic interest rate is forecast to see decreases to single digits over the next few months.
Promoting Investment in Brazil
Along with a solid budget surplus and lower interest rates, the Treasury aims to actively promote Brazilian investment. 2011 saw record levels of foreign investment in Brazil, but according to Mr Mantega, things are about to get even better.
“2012 will be the year of investment in Brazil,” he said. The Brazilian government is aiming to attract public and private investment funds to Brazil to modernise its infrastructure and reinforce its industrial sector. The government is targeting the areas of logistics, energy and housing.
Social housing investment is a top priority. To this end, the Finance Minister recently met with representatives from Caixa and Banco do Brasil banks, and Brazilian real estate developers to request acceleration in the Minha Casa Minha Vida (MCMV) programme.
MCMV – the largest investment in property in Brazil – aims to build 3 million homes by the end of 2014 and the Brazilian government is keen for this target to be met. “The Brazilian construction industry has been one of the fastest growing in recent years,” explains Mr Mantega, “but in the government we believe that we can work faster to deliver units.”
Obelisk International, a major developer of social housing under the MCMV programme in north east Brazil, welcomes this fresh impetus from the government to push Brazilian investment. “It’s good news for all foreign companies investing in Brazil,” comments Gary Hardacre, CEO of Obelisk International, “because this will help promote and facilitate private investment in the country over the next year.”
Contact Obelisk International on 0034 952 820 319. Via email: info@obeliskinternational.com or visit our website: www.obeliskinternational.com.
Follow us on Twitter, Facebook and LinkedIn.
Labels: Brazil investments, Brazilian real estate, investing in Brazil, investment in Brazil, investment opportunities, Obelisk International
posted by Alison Kane at 3:41 pm
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