Property market in Brazil continues to prosper

The latest title of Global Economic Weekly for Latin America says it all – ‘Brazil: turning even more bullish.’

This affirmation from a world leader in investment management is the perfect complement to Brazil's successful Olympic bid and yet another boost to Brazil property investment potential.

Global Economic Weekly is published by Bank of America Merrill Lynch (BofAML). In it, BofAML has bumped its forecast for Brazil’s GDP growth next year up to 5.3% from 4.5%. This 0.8% hike comes on the back of Brazil’s strong GDP growth in Q2 (1.9% - well ahead of the meagre 0.3% in Germany and France), continual monthly increases in consumer spending and rising industrial output (2.1% increase in Q2).

The BofAML three-page report is full of glowing statistics from the Brazilian economy and it paints an equally glowing outlook. According to BofAML, ‘a brighter outlook for the global economy and a faster recovery of labour conditions have prompted us to revise our 2010 growth forecast to 5.3% from 4.5%.’
The report highlights Brazil’s economic rebound in industrial production, retail sales, formal job creation and credit growth. BofAML predicts 2.2% GDP growth for Q3 this year with 1.8% growth for the final quarter.

But the aspect of the Brazilian economy that most impresses BofAML is ‘the sharp recovery of labour conditions.’ Seasonally adjusted unemployment in Brazil is now 7.9%, the same level as November last year and job creation in August was 176,000, similar to the pre-recession rate. According to BofAML, the current level of employment and job creation means consumers in Brazil are ‘at a very solid stance.’