Brazil seen as a safe investment market
Recent reports suggest that the popularity of Brazilian property investment is not just down to a buoyant market with good returns, but also a reassuring message about the safety of investing there.
In a promising statement on the Brazil economy, credit agency Fitch recently upgraded Brazil’s credit ratings, which reflect local and foreign currency debt, from BBB to BBB-Minus, and its country ceiling from BBB to BBB+. The Head of Latin American Sovereign ratings at Fitch, Shelly Shetty, said “Brazil’s medium term growth trajectory is likely to remain relatively robust due to its domestic demand dynamics, which are underpinned by the country’s economic diversity, a large and growing middle class and a positive investment cycle”.
The President of Brazil’s central bank, Alexandre Tombini, said this was recognition of the country’s consistency in economic policy over time.
The assessment by Fitch is that the sustainable potential growth rate of the Brazilian economy has increased to 4%-5%. This is partly because President Dilma Rousseff’s administration has showed a leaning towards fiscal restraint, measures of which include announcing spending cuts this year and reducing the Treasury’s loans to a national development bank. Brazil’s economy has also been growing very healthily of late with historic rates of 7.5% growth in their GDP last year, all of which combines to make Brazil a very attractive investment option.
To discuss any of our Brazilian properties with us here at Emerging Real Estate, please do not hesitate to contact us.
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