I would take news of Brazil’s economic slowdown with a heavy pinch of salt. The economy is predicted to grow by 3% again this year, which is far better than can be expected from most European countries.
(PRWEB UK) 22 May 2013
Commenting on the recent article in the FT ‘Investors worry the Dilma model is unravelling in Brazil’, Loxley McKenzie, Managing Director of Colordarcy said, “Brazil has long been a favourite destination for Colordarcy clients – when it comes to property prices, Brazil is the fastest growing country in the world if we look at the latest Knight Frank Report with 13.7% growth nationally in 2012 .
This news does bring some concern that the slowing economy may have an impact in the short term, however it is likely to be short-lived and could even have a beneficial cooling effect on the runaway growth in property prices we have seen in recent years.”
Colordarcy analysts explained that, looking at the GDP figures, Brazil’s economy has been on a downward trajectory since the new President took over. Exceptional GDP growth of 7.5% in 2010 has been followed by 2.7% in 2011 and 0.9% in 2012 (Source: World Bank)
Yet despite the slowdown in economic growth in recent years, Brazil’s property market has moved in the opposite direction and has remained near the top of Knight Frank’s Global House Global House Price Index.
McKenzie added, “I would take news of Brazil’s economic slowdown with a heavy pinch of salt. The economy is predicted to grow by 3% again this year, which is far better than can be expected from most European countries.
Unemployment was also at its lowest level for 11 years at 5.7% in March (Source Nasdaq.com). This is exceptional when compared to elsewhere in the world where many countries have struggled to bring their unemployment rate down.
As long as Brazil moves through this transitional period and maintains economic stability, I see no reason for investors to be worried about investing in property.
The World Cup is now close on the horizon and with the Olympics also coming to Rio in 2016 we should see a further boost to the country’s economy”.
Colordarcy is currently offering investors the chance to invest in a unique Brazil government backed social housing development with annual return on investment of 20%. Minha Casa Minha Vida or My House My Life as it is translated to in English is a Brazil social housing project designed to provide low-cost housing for Brazilians who wish to own their own homes.
Full details on Brazil social housing can be found on Colordarcy.com.
Notes to the editor:
Colordarcy is a leading property investment company that specialises in finding positive cash flow investment properties worldwide. Colordarcy investment property portfolio includes some of the best properties for sale in Brazil, Florida, Turkey and the United Kingdom.
For more information, supporting pictures or logo artwork, please contact:
Tel: +44 (0) 207 100 2393