Investment in Brazil
The willingness to invest in Brazil is one of the highest in Latin America. 69.92% of business owners in Brazil report that their companies are currently investing in and/or expanding business locally.
Between Argentina, Brazil, Chile, Colombia, Mexico and Peru, Brazil stands out. Certainly, Brazil is the country where real estate experts have the greatest expectations in terms of economic growth. More than 90% of the real estate agents in the country expect a significant enhancement of the GDP in the next 12 months.
First of all, Brazil’s services sector grew in July at its fastest pace this year. Official figures showed this week, another indication that Latin American’s largest economy started the third quarter on a solid footing.
Furthermore, a day after figures showed retail sales posting their biggest rise of the year in July, government statistics agency IBGE said service sector activity climbed 0.8% in the month and 1.8% on the year, both surpassing forecasts by far.
“The outlook for private consumption and retail/services is moderately positive,” wrote Alberto Ramos, head of Latin American research at Goldman Sachs, in a note to clients on Thursday.
as a result, the government has raised its 2019 economic growth forecast to 0.85%. Also, economy Ministry officials said the economy will grow faster from now.
“We expect real GDP to grow a modest below-trend 1.0% in 2019,” said Alberto Ramos, head of Latin American research at Goldman Sachs. “Real activity is expected to be supported by a firmer credit impulse, accommodating monetary and financial conditions, and gradual labour market improvement.”
Most noteworthy, compared to the same period a year ago, Brazil’s GDP grew by 1.0%. It is much faster than the 0.7% forecast in a Reuters poll of economists. A 3.2% jump in fixed investment and a 0.7% rise in industrial production helped drive the expansion. According to Jackson at Capital Economics, that was the third-best quarterly growth rate in fixed investment this decade.
(Sources: Forbes and GRI Hub)