Brazil GDP shows strong growth of 9% for first quarter in 2010
Posted: 06/08/10 with the tags Economy in Brazil
Brazil GDP shows strong growth of 9% for first quarter in 2010
Brazil has reported that during the first three months of 2010, the Brazilian Gross Domestic Product (GDP) has grown by rates that would bring the yearly growth rate to 9% compared to the same period in 2009. This is the fastest growth rate in the last 14 years and clearly shows that the Brazilian economy is growing despite the problems that are evident in Europe and the United States.
Majority of the GDP in Brazil comes from the domestic market as export only stands for approx. 14% of the Brazilian GDP. With the fast growing middle class in Brazil, it is forecasted that the Brazilian economy will continue to see strong growth levels. At the end of 2008, the middle and upper class in Brazil already reached in total the incredible number of 111 million consumers.
Experts are predicting that the next quarters will be slightly more modest and in the Focus economical report, it is forecasted that the GDP growth for 2010 will reach approx. 6,6 % for the full year.
What does the strong growth in the Brazilian economy mean for Brazil property buyers?
Historically Brazil has witnessed several periods of economical recession and uncertainty. The general price level for real estate in Brazil is still very modest compared to other advanced countries. Clients who are considering investing in Brazil real estate are advised not to wait too long as we forecast that along with an ever growing economy and purchasing power in Brazil, one or many of the following things will change:
- An increase in price level for properties in Brazil
- A stronger Brazilian currency, which will make future buyers pay more for a property in Brazil
- Increasing construction costs
- Increasing prices for land in Brazil
Clients that do get onto the "Brazilian property ladder" before the economy grows further, will stand to benefit most from their property investment in Brazil.