Innovative land & property investments
Investment Property in Brazil
Buying Guide
Economic Drivers
Southern strength
Brazil’s industry is concentrated in the south of the country and, while there is industrial growth in the north-east and interior, the south is likely to remain the country’s industrial heartland thanks to the concentration of labour and infrastructure in the region.
Likewise, Brazil’s banking and service sectors find their major centres in the south. Rio de Janeiro and Sao Paulo both boast successful stock exchanges and Belo Horizonte is also a leading financial hub.
Government and foreign investment in these sectors is heavily concentrated in the south and while this rather ‘bottom-heavy’ arrangement has left the north of the country somewhat underfunded (at least, until the beginning of the country’s current tourism boom) it does benefit Brazil in terms of the ease with which trade and financial negotiations can be carried out with Brazil’s trading partners Argentina, Uruguay and Paraguay, all lying to the south of the country.
Foreign support
Foreign investment in Brazil has become increasingly impressive in recent years, particularly from the USA.
The latter country has been invaluable in providing the equipment and know-how behind Brazil’s industrialisation and, more recently, its emergence as a financial centre of no small importance; in return, of course, the US has gained substantially in raw cash terms.
The benefits can be seen in the soaring towers of the central business districts of Rio and Sao Paulo and in the growing affluence of the Brazilian middle classes (though, again, the view from the favelas is not quite so rosy).
Managing its debts
At the beginning of the century Brazil suffered an economic downturn and currency depreciation which lasted from 2001 to 2003, caused in part by the country’s large and ill-ordered national debt structure.
However, President Lula’s economic policies (and, in justice, those of his predecessor Cardoso) have brought Brazil back up towards the black and its current economic growth has enabled it to restructure its debt successfully.
While dangers remain, Brazil’s economy is currently well-managed, diverse and full of potential, and financial group Goldman Sachs is now tipping the country to be in the top-five global economies by the middle of this century.
Key Points
- The country’s industrial, banking and services might is centred on the south around Rio de Janeiro and Sao Paulo
- Brazil’s industrialisation and emergence as a financial centre of importance is the result of considerable USA financial backing
- Following the economic downturn and currency depreciation of 2001-2003, the country is back in the black and managing its debt
- Goldman Sachs is tipping the country to be in the top five global economies by the middle of this century
Downloadable Reports and Documents
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