Brazil is one of the few countries in the world currently surviving the global slowdown with a degree of positivity, argues one company…
It would be misleading to say that the credit crunch is not having an effect on the economic fortunes of Brazil, but much of the downturn that is happening there can be attributed to foreign factors.
For example, many of the large industries in Brazil count US customers among their biggest clients. When orders dry up from overseas, it is bound to have an effect, but this appears not to be causing large-scale company failures.
As Brazil’s economy is to some extent immature compared to many of the major economies in the world, it has yet to build up exposure to the high levels of debt that afflict the most developed nations.
Therefore, while it is impossible for a country to be completely untouched by the global slowdown, the downturn in Brazil should be less severe than other countries.
For the overseas property buyer, Brazil presents opportunities for all parts of the market. Investors are attracted by the low entry levels and potential for rentals from the US as well as European visitors.
The most popular resorts in the north-east of Brazil are also only a six-hour flight from the UK, making it as viable a holiday home destination as the Caribbean, Florida or Dubai.
Brazil will be ‘steady’
The newest part of the market, however, is for people who are beginning to see property in Brazil as a way of emigrating away from the UK – and the economic outlook for the country only goes to reinforce that view.
Oliver Watson, regional managing director of international recruitment consultant Michael Page, says, “If you are looking for an overseas opportunity, look for a sound gross domestic product (GDP) and an economy linked to natural resources. Brazil won’t see stellar growth over the next year, but it should be steady.”
With the north-eastern region of Natal preparing to welcome a David Beckham Soccer Academy, a Rubens Barrichello motor racing school, and facilities for tennis, golf and even polo, there is also the chance to set up home in a place that has some of the best leisure facilities to be found anywhere in the world.