Posts Tagged ‘Brazil’

Brazil lowest ever unemployment

Posted by Pioneer Land Group in Economy.

May 2011, Brazil’s unemployment rate falls to the lowest rate ever, whilst the rest of the developed world struggles on. The jobless rate fell to 6.4 percent in May, the lowest since statistics began in 2002.

As Latin America’s biggest economy continues to hire more and more workers to meet growing domestic demand, average real wages also rose – by 4 percent year-on-year to 1,567 Reais (US$988) per month.

Record low unemployment coupled with a “substantial” increase in wages are an “important risk” for inflation and a driver of economic growth, central bank policy makes stated in their June board meeting.

For the full story on economic growth and control, visit Bloomberg.

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Brazil super yacht market growing

Posted by Pioneer Land Group in Tourism.

As mentioned in the Financial Times this week, the Italian luxury yacht builder Ferretti is turning to the new super rich of Brazil to increase sales by up to 15 per cent annually during the next three to four years.

The CEO of Ferretti told the FT that due to Brazil’s love for yachting, the hundreds of harbours and yachting clubs, its 7400km of stunning coastline and the year round warm weather, Brazil was a natural market to focus on. With Brazil’s rapidly growing economy the yachts are now more affordable to Brazilians then traditional markets.

According to Dasein Executive headhunters, chief executives and directors in Sao Paulo earnt more than in London and New York last year.

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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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Arabian Investors in the market for Brazilian Real Estate.

Posted by Pioneer Land Group in Economy, Real Estate.

Sotheby’s International is preparing a special portfolio of property for wealthy Arabian investors keen to take advantage of strong yields in a relatively unexposed international market. The Director of Sotheby’s in Brazil, Mr. Fabio Rossi will present the selection to groups of investors from the United Arab Emirates, Qatar and Bahrain looking at commercial real estate, farms, and hotel and tourist enterprises.

In an article for www.brazzilmag.com Mr. Rossi explained that “The return of commercial real estate in Brazil ranged from 0.8% to 1% per month”, this is against a backdrop of a global average of 3% to 4% per year. The Arabian investors have shown a keen interest in the tourism and hotels market and are particularly curious to the affects the world cup in 2014 will have on the segment. With 5 groups playing a strong hand in discussions it is believed they will look to invest some $50million each, and with 3 of the groups keen to partner with Brazilian companies, it could get very competitive come September.

Mr. Rossi goes on to say that Brazil, out of the BRIC economies has now become the number one target destination for Arabian investment. Yet the market still remains in its infancy, foreign investment into Brazilian real estate is 5% of the total compared to a global average of around 30% to 40%.

Ref: Arab Investors looking for productive land in Brazil

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Big noises for Brazil’s tourism market

Posted by Pioneer Land Group in Tourism.

President Lula da Silva has been laying down his countries ambitions for their tourism industry over the next 8 years. Already hosting the FIFA World Cup in 2014, Brazil is keen to stamp its authority on the global tourism stage with a successful bid for the 2016 Olympic Games. In a very interesting global summit on travel and tourism, delegates from around the world gathered to discuss the key issues concerning the industry today. Given the state of the global economy many believe this to be the most important conference yet, and President da Silva was keen to take advantage of such an opportunity.

The attraction of Brazil is obvious to many – year round sunshine, beautiful beaches and a party atmosphere and a low cost of living ticks many boxes on the tourist checklist. However, President da Silva used the platform as an opportunity to talk about the responsibility of governments in ensuring the travel and tourism industry continues to grow not just in Brazil but also in South America. Furthermore, he talked about the need to make travel and tourism accessible to every Brazilian citizen and not just the wealthy elite.

Speaking at some length on the airline sector, the President stressed the importance of opening affordable air routes to cater for the masses. “How do we expect Brazilian tourism to work if we don’t have, for example, more competitive flights from the airline sector? “How do we expect a Brazilian gets to know South America if we have few flights to South America? Or how do we expect South American travels to Brazil if the flights from South America to here are few?” the president said. Freedom of mobility was the underlying theme, a vision where all South Americans are able to explore their great continent, as well as bridging the continental gap between Africa and Brazil.

Bold words by the leader, but with the government already pledged to spend US$304 billion in infrastructure, providing 4,700kms of railroads and considerable upgrades to all airports, roads and existing railroads, the next 8 years could be very interesting indeed.

Ref: Brazilian President presents big goals for tourism

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Build it and the planes will come

Posted by Pioneer Land Group in Economy.

In a further boost to property owners in Brazil and those looking to visit on holiday, the National Civil Aviation Authority (ANAC) has recently granted permission for two new airlines to become operational by the end of this year. The announcement by Agencia Brasil will be seen as welcome news to the aviation industry as the continued passenger traffic growth and strong economic performance has meant the current demand on existing airlines has started to strain resources.

With the economy forecast to continuing growing at 4% over the next 20 years and a tourism industry that has seen a fivefold increase in international arrivals over the past 15 years, there is a very real need to increase the availability of domestic flights in Brazil. This giant country is home to 31 per cent of all Latin America’s GDP and is a major hub for transport in South America and beyond.

The two new airlines Sol Linhas Aereas and Nordeste Aviaco Regional Linhas Aereas have both recently been given a licence to schedule flights within Brasil and now await permission before they can start operating.

In further positive news American Airlines and GOL Airlines intend to sign a code share deal, which will see an increase in availability and variety of routes between the states and Brazil, a great boost for all those thinking of investing in the Brazil from the US.

To read about this story in more depth please visit: http://www.estatesbrazil.com/2009/09/new-low-cost-airlines-in-brazil-to.html

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Brazil 2016 Olympics

Posted by Pioneer Land Group in Economy, Tourism.

Congratulations to Brazil for winning the bid to host the 2016 Olympics! As the country says farewell to football fans around the world in 2014, just two years later a new influx of sporting professionals will be making their way to Rio de Janeiro for the 31st Olympic Games. A remarkable achievement for the south American city considering they bid against Chicago, Tokyo and Madrid and this is further evidence of the giant strides the country is making under the leadership of President Lula. During his acceptance speech the rightfully proud President stated “I confess to you if I die right now my life would have been worth it”. And he may be right, the effects on the economy of hosting the Olympic games cannot be underestimated.

Investment into infrastructure will take place on unprecedented scales, as transport and communication lines are upgraded to leave a lasting legacy, long after the final Olympian has returned home. A major event like this puts the country firmly on the global radar, the influx of foreign arrivals is likely to increase by the thousands and for those that enjoyed themselves, they are likely to want to come again giving a boost to the hotels and tourism industry. Crime is also predicted to fall as the city comes under increased scrutiny from the world’s media and the Olympic Committee. Finally, a large increase in foreign direct investment (FDI) especially in construction will create thousands of jobs from as early as next year. The knock on effects for the economy are going to be huge.

So congratulations to Rio de Janeiro and President Lula for securing the vote, the next decade in Brazil is certainly going to so very exciting, and if you like sport then you don’t need to think about anywhere else!

The Olympics in Rio

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FIFA Destinations

Posted by Pioneer Land Group in Tourism.

With Brazil playing host to FIFA World Cup in 2014, the excitement levels in this football mad country are already starting to build, and why not? Football may have it roots set in England, but for the purist there is only one nation that truly delivers. No other country has had such an impact on the world game and many believe that Brazil 2014 will see football finally come home. What cannot be disputed, is the stunning environment in which this World Cup will take place. Set amongst 12 different cities, each with their own unique feel and buzz, the atmosphere will be electric wherever you go.

I want to talk briefly about Natal here, but recently FIFA have begun profiling each of the elected cities so if you get the chance head over and check out all their destination on their website.

Natal City FIFA 2014 World Cup Stadium

Natal City FIFA 2014 World Cup Stadium

Read the rest of this entry »

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Brazil tourism board launch new website

Posted by Pioneer Land Group in Tourism.

The BrazilianTourism Board known as “Embratur” has lauched the 2nd phase of their “Brazil Sensational” advertising campaign with an overhaul of their website www.brasilnetwork.tur.br. With an advertising budget for the US alone of $13m, the Embratur president highlighted that key audiences increasingly use the internet as their sole source when booking travel packages, airfare and hotels. “Not only does the Brazil Network provide information for the consumer, but it is also significant for business travelers, tour operators and travel agents” says Walter Vasconcelos, Embratur Director of Marketing. For the full story visit Reuters: http://www.reuters.com/article/pressRelease/idUS122065+01-Sep-2009+PRN20090901

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Brazil’s new oil fields to drive economy & jobs

Posted by Pioneer Land Group in Economy.

Following the discovery of the deep-sea oil fields off the coast of Brazil, which geologists estimate could hold tens of billions of barrels of oil, Brazil’s economy is well positioned. This is even more the case now following the Brazilian governments announcement that they want the national oil company Petrobas to control over 62% of the oil fields’ exploration. Foreign companies will be consigned to financial investors, enabling Petrobas to make the important calls on development speed whilst enabling Brazil to provide more jobs to nationals. For the full story visit the New York Times; http://www.nytimes.com/2009/08/18/world/americas/18brazil.html?_r=2&nl=todaysheadlines&emc=a1

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“Brazil is the number one country in the world for investments” says billionaire Sam Zell

Posted by Pioneer Land Group in Real Estate.

With Brazil at record-low interest rates, Latin America’s biggest economy is now attracting more investors than ever before. A 5% cut in interest rates to 8.75%, and a 34bn R$ (US$18bn) housing stimulus plan announced by the government in March have boosted demand for residential and commercial real estate investments said Thomas Macdonald of Equity Internationl.

“Brazil is the number one country in the world for investments” said billionaire Equity International owner Sam Zell in a CNBC interview on July 28th. Equity International has stakes in Gafisa, Brazil’s second largest real estate developer, as well as a 17% stake in BR Malls, Brazil’s biggest owner of shopping malls. Equity International now hope to open a real estate financing company to grow Brazil’s “still nascent” real estate financing market. The real estate investment company hasn’t found a partner yet to being operations and still may open its own company. Full story at Bloomberg.

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Brazil Real rises 4.7% against US$ in July alone

Posted by Pioneer Land Group in Economy.

Gaining for the 5th month in a row, the Brazilian Real rose 4.7% against the US$ in July. The Real has risen a total of 24% against the US$ in 2009,  the best performer against the US$ out of the 16 most-traded curencies.

“As the Brazilian economy is expanding at a faster pace, foreign investors are snapping up the country’s equities and fixed-income assets” said Gerson de Nobrega, foreign exchange manager at Bando Alfa de Investimento SA.

Brazil’s trade surplus rose 23.8% in the first 6 months compares with the same period last year, as exports reached their highest level since November. Brazil had a $4.6bn trade surplus last month, the biggest since Dec 2006. Read the full report at Bloomberg.

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Brazil Economy to Grow 4% says Barbosa

Posted by Pioneer Land Group in Economy.

According to Bloomberg, Brazil’s economic policy secretary Nelson Barbosa told O Globo newspaper that with falling interest rates he predicts the Brazilian economy to expand up to 4% by end of 2009.

“Brazil will grow 1% < 1.5% in the 2nd quarter compared with the previous quarter” he said. “The Central Bank still has space for more interest rate cuts”.

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Bye Bye G8, Hello G14

Posted by Pioneer Land Group in Economy.

It seems that the combination of the global recession, the imminent rise of the new super powers and the realisation that greenhouse emissions will play a large part in the future global economy, has had a profound effect on the control of our future.

Where once the profound decisions where made by the G8, this fire-side gathering from the 70s (France, Britain, Germany, Italy, Japan and the US, only later joined by Canada and Russia) have finally succumbed to the realisation that they no longer call the shots.

Following the invitation to Brazilian President Lula de Silva to attend the recent G8 summit, numerous discussions were held over which countries are crucial for the decisions that will shape the future of the World. The obvious additions are to be India, China, Brazil and Mexico with South Africa and Egypt likely to attend the final roll-call.

Soon we will have the G14, representing over 80% of the Worlds economy, and so far more relevant when making the most important decisions. Full article on Times of India.

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Brazil ranked 2nd for venture capital investment behind China

Posted by Pioneer Land Group in Economy.

With a stable and modern financial system that has largely escaped the credit crisis, a growing economy and a legal system that respects real estate rights investors see ample opportunity in Brazil, a sentiment echoed by Coller Capital who rank Brazil as the 2nd most attractive choice behind China but ahead of India. At the end of 2008, local and foreign investors had committed $28bn in venture and private equity capital to Brazilian companies, up from $6bn in 2004. Investors have financed over 500 Brazilian companies to date, and there’s $12bn left in the kitty.

Read full report in Business Week.

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