Posts Tagged ‘Brazil Economy’

Brazil purchasing power in NY increases US-Brazil flight routes

Posted by Pioneer Land Group in Tourism.

The number of Brazilian tourists who travelled to New York increased 41% to 359,000 last year from 2007, making visitors from Brazil the eighth-largest group arriving in the city. Demand is so strong for travel to New York that American Airlines is adding 11 flights a week between the U.S. and Brazil beginning November 18th, the Texas-based air carrier said in a statement on June 24th.

In the country of more than 193 million people, Brazil now has more billionaires than any nation in Latin America according to Forbes magazine, whilst the number of millionaires jumped 19% to 126,882 from 2008 to 2009, according to Boston Consulting Group data. Gross disposable income in Brazil advanced 54.3% from the time President Luiz Inacio Lula da Silva took office in January 2003, the national statistics agency said in an e-mail statement July 16th.

The Brazilian Real has also rallied 100% against the dollar since 2003 and jumped 33% in 2009 alone; the best-performing currency in the world; helped by revenue from exports of commodities such as coffee and soybeans and demand for the nation’s stocks and bonds.

First quarter economic growth of 9%, the fastest since 1995, was driven by consumer spending, as retail sales climbed 15.7% in March from a year earlier, the most since at least 2001. Gross domestic product will expand 7.2% in 2010, the quickest pace in more than two decades, according to a central bank survey of about 100 economists published July 19.

For the full story please visit Bloomberg.

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IMF raises Brazil growth forecast to 5.5% for 2010

Posted by Pioneer Land Group in Economy.

Due to the combination of strong domestic and external demand, strong macroeconomic fundamentals and higher commodity prices, the International Monetary Fund this week raised its growth forecast for Brazil in 2010 to an impressive 5.5%. With unequalled high levels of Foreign Direct Investment and also increasing domestic consumption, Brazil has a unique global economic strength in 2010 with growth rates only paralleled by recognised giants India and China (and without many of their problems). For further details visit Bloomberg.

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Brazil to be 5th largest economy within a decade!

Posted by Pioneer Land Group in Economy.

Whilst the rest of the World struggles with what seems an unavoidable whirlpool of economic decent, Brazil’s story is a sharp contrast. With countries such as Spain suffering unprecedented unemployment levels around 15%, Brazil’s economic strength and stability has been proven with over 1m jobs created in 2009.

The final figures should range from 1.1m according to Labor Minister Carlos Lupi up to 1.3m if President Lula da Silva’s forecast is right. With a population of 190m this is not an enormous percentage increase, however for a country with a lower base salary and standard of living, these figures bring much needed help. More than the economic ripple throughout Brazil, these figures also bolster the growing confidence of a country that is now realising its full potential.

“Brazil is going through a magical moment in its economic life” Lula said, “At a time when the world is facing unemployment, we created 1.3m new jobs this year of crisis”. Lula was attending an event with automobile manufacturer Ford to unveil their investment in the country’s northeastern state of Bahia.

Brazil Taking off

As the world’s 5th largest landmass, one rich in natural resources from oil to minerals to biofuel crops, with new offshore oilfields recently discovered and increasing mineral demand from Asia, Brazil’s economic growth has already returned to an annualised rate of 5% of GDP. Along with established manufacturing industries from aircraft to mobile phone manufacture, Labor Minister Lupi expects to create a further 2m jobs in 2010.

When Brazil’s growth rates, resources and economic stability are compared to the collapsing developed economies it is evident that Brazil’s meteoric rise will occur far sooner than predicted. Goldman Sachs originally forecast that Brazil would become a major player around 2040, according to growth rates in 2001. What a change 18 months can make. Unless France and Britain can pull themselves out of their current spiral, and sort some serious fundamental economic challenges ahead, then Brazil will be recognised as one of the most powerful countries within the decade. Watch this space.

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Sam Zell focuses on Brazil

Posted by Pioneer Land Group in Economy.

“If you look at all of the facts, I don’t think there’s another environment in the world that’s better than Brazil.” Sam Zell, Equity International


Zell’s Equity International is focusing heavily on Brazil, which he singled out as a particularly strong opportunity for investment. Like Mexico, Brazil subsidizes low-income mortgages, so consumer access to financing has been largely unaffected by the markets.

The country also has “unlimited natural resources,” and, unlike Mexico, a strong executive talent pool to help outside investors achieve scale in operations.

On the retail side, Zell noted that store sales are up 12% from last year in the malls owned by his group — a stark contrast to the recent U.S. figures. “If you look at all of the facts, I don’t think there’s another environment in the world that’s better than Brazil.”

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