The Brazilian domestic real estate market is attracting huge foreign investment, helped by a strong and resilient Brazilian Economy.
The Brazilian Government has released economic data showing a 1.9 per cent increase in real GDP in the second quarter. This has led to Goldman Sachs and BNP Paribas revising their original growth forecasts upwards.
Analysts were predicting growth of 3.5% for the year in July 2009, but have now revised this to 4 %, according to a weekly central bank survey of about 100 economists. They also forecast the economy to only shrink 0.16% this year, down from 0.73%. Brazil’s economy has rebounded from the global financial crisis and Brazil has defied analysts’ previous forecasts. The figures bode well for 2010 stated the Brazilian Finance Minister Guido Mantega.
The Brazilian Central Bank president Henrique Meirelles said GDP growth in this second quarter is brilliant news and shows that Brazil has already come out of recession. Finance Minister Mantega said This growth is based upon positive trends in industry, services and employment rates.
A major factor in the quick turnaround experienced by the Brazilian economy is a series of measures introduced by the Government to incentivise the domestic real estate market and construction industry. Minha casa, Minha Vida has been a huge success and has contributed to the 2.1 per cent increase in domestic spending over last months figures.
Brazils construction industry was heading into decline after several years of strong growth and this scheme has reinvigorated the construction industry, which accounts for 5 per cent of Brazils yucky domestic product.
The Minha Casa, Minha Vida scheme will receive another 10 Billion Reais in 2010 from the Federal Government. Brazil has a housing shortage estimated at 8 million units and this scheme was bought in by the Government to provide affordable housing and to stimulate the construction industry downturn caused by the worldwide economic crisis.
The Brazilian economy is the latest, Group of Twenty economy to emerge from recession, following the French and German economies, which both posted growth of 0.3% in the same quarter.
Leslie Richards is a land consultant to Brazil land Invest and wrote this piece on the Brazilian economy and affordable housing sector. The author invites you to visit Brazil Land Invest for more information about investing in Brazilian real estate in Paraiba, North East Brazil.