International Conference of Fundraising Managers

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The Booming Brazilian Economy

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Brazil is the fifth largest country in the world, but for centuries now it struggled to compete in the global economy. That was until a slew of economic reforms in the nineteen-nineties encouraged international investment, which grew the economy at a record pace. Today Brazil is the world's eighth largest economy and it is growing faster than any other in the Americas.

In fact, according to recent numbers, the country claimed its largest monthly intake of foreign investment in the last months of 2009. The numbers were well above five billion, which was nearly double that of the same quarter in 2008. The country also posted a record of 35 billion pounds in foreign investment in 2009.

Why is this happening? Well, Brazil's economy has had to rely a bit more on foreign investment due to the decrease in exports as a result of the global economic recession. But even though the economic numbers are mixed, it is encouraging that foreign investors are sending their money to Brazil in the midst of a deep recession. What are they buying? Brazilian Property remains a hot seller, even though it can be difficult for foreigners to obtain.

The mortgage market in Brazil is still a bit provincial, as they do not yet offer mortgages to foreigners. This means that investors and vacationers have to secure alternative financing, most of the time this means obtaining deals in their own home countries. While this can be a pain and it may even cost a bit more than the average Brazilian mortgage, the housing savings are still appealing.

However, it is important to note that new laws will be passed in the coming months and years that are expected to extend to foreigners the option of purchasing Brazilian mortgages. Investors may also want to consider off-plan financing, which offers competitive installment plans to foreigners that may be more attractive than other mortgage options.