Investing in Brazil the emerging economy

Today throughout the world much of what has happened during the after effects of the American meltdown known as the great recession and the slowing economies in Europe is just a bleak memory. There are pockets of problems here and there throughout these countries, but there is hope. New growth is springing up around the world. Some countries, in particular, have more sustained growth than others. Brazil is one of those countries that has seemed to spring back to life. So what happened in Brazil? Major growth caused by the commodity boom in 2011 created new jobs that caused an influx of disposable income. But now you may be asking yourself “Where do Brazilians invest in?” Today, we will be covering this question. Let’s get started!

  Commodity Boom

  Emerging economies such as China and India have a great outlook in both minerals and agricultural products that Brazil had to offer. This in turn created 2.2 million jobs in 2011 which caused a huge influx in disposable income for the people of Brazil. This freed up a lot of investment capital for the people of Brazil to invest in various sectors.  Because of the massive amount of wealth flowing in and out of Brazil, large fortune 500 companies from around the globe came to invest in the growing Brazil infrastructure. With the World Cup earlier in 2014 and the Olympic Games in 2016 Brazil’s economic growth continues to skyrocket. Travel growth has also spiked, as it has gone up some 400 percent over previous years making it a hot spot for tourists.

  The Middle Class

  Because of the economic surge, the emerging middle class was growing leaps and bounds with a surge in disposable income. This left the question, “Where do Brazilians invest in?” Extra income was spent on items like refrigerators, microwaves, cable television and other high-end electronics. The middle class took it further and started investing in real estate to better their living conditions and thus a real estate market had steadily increased over the years. The middle class continues to upgrade their living conditions into bigger houses and secondary houses as well.

  Investors  

  Whether you are investing in commodities, agriculture property, residential real estate, or the stock market Brazil has a lot to offer in these sectors. Currently, the cities of Fortaleza, Rio de Janeiro, Sao Paolo, Porto Alegre, Recife, and Natal have been some of the fastest growing in Brazil. Investments in residential real estate projects have risen over the years in these areas. There are heavy investments in modernizing these cities and adding every luxury that can be offered. You need to get in touch with a reputed real estate agency such as Prestige International to get the maximum returns for your real estate investments in Brazil. They can be reached at prestigeinternational.com.br.

  The Brazilian Securities, Commodities and Futures Exchange (BM&F BOVESPA) has also seen a massive influx of growth thanks to the economic boom. The exchange has a market cap around 700 Million pounds and is the 13th largest traded market in the world.

  Brazil also offers investors oil, gas, biofuels, and ethanol as well as many agricultural goods. These agricultural goods include soya and sugar, while Brazil is also the largest exporter of beef in the world. These sectors are the reason for much of the growth in Brazil and remain a popular trend for investors.

  Conclusion

When someone asks you, “Where do Brazilians invest in?” you now have a good idea of where they invest their money they’ve earned. Brazilians still have a lot of opportunities and these continue to grow each year. Will you follow the trends and invest your money in Brazil’s economy too?

 

Photo: Laszlo-Photo