Master Life Securities Report on Brazil

Nov. 24, 2011 - PRLog -- Brazil has become a magnet for foreign investors in search of opportunities for investment. And the good news is that with its buoyant economy and booming consumer spending, Brazilian investments are here to stay.

In their latest report on Brazil, Master Life Securities take a look at Brazil’s economy, politics and demographics. Based on these factors, ‘Viewpoint, Brazil in Focus’ predicts that the current stellar growth is likely to continue at least until 2016, meaning potential for investment in Brazil still has plenty of room for growth.

Finance Rushes to Brazil

According to Master Life Securities, asset managers are “rushing to take advantage of Brazil’s infrastructure investment”. Banks and hedge funds from locations globally “are descending on Brazil, all hoping to participate in the country’s long-overdue success”.

This dash to share a slice of Brazilian investment potential is reflected in record levels of foreign direct investment (FDI). In the 12 months to May this year, FDI in Brazil reached US$64 billion, the highest annual amount ever. FDI levels since May have continued to rise and financial experts are predicting 2011 will be the best year ever for Brazilian investment levels.

Economic Strength

A compelling reason for so much foreign interest in Brazil is its economy. With GDP growth of 6.9% last year, Brazil ascended to seventh place in the world economic power ranking. On the back of continued growth, many analysts believe Brazil will edge its way past the UK this year. And the government predicts that the Brazilian economy will see an average annual growth of 4.9% between now and 2015.

Part of this growth is fuelled by consumer spending, not least by the 20 million Brazilians who have joined the middle class since 2006. This trend has led to what Master Life Securities call “a remarkable consumer spending spree” and has affected goods across the spectrum from electronics and cars to property in Brazil.

The Growth Acceleration Plan (PAC) has had a major role in the new-found wealth. Under the PAC, millions have benefitted from better infrastructure, transportation and social improvements. The social housing programme, Minha Casa Minha Vida also forms part of the PAC and constitutes the largest investment in real estate in Brazil.