Investors into the Brazilian real estate market will be heartened by the raft of positive news emerging from Brazil with regard to the economy, GDP growth and the boom in Latin Americas largest economy.

The Brazilian Government has released economic data showing a 1.9 per cent increase in real GDP in the second quarter. This has led to Goldman Sachs and BNP Paribas revising their original growth forecasts upwards.

The Brazilian Finance Minister Guido Mantega stated that Brazil’s economy has rebounded from the global financial crisis. Brazil has defied analysts’ previous forecasts and the figures bode well for 2010. Analysts forecasts from July 2009 have increased from 3.5% to 4 %, according to a weekly central bank survey of about 100 economists. Analysts predict the economy to only shrink 0.16 per cent this year, down from 0.73% predicted in May of this year.

Mantega adds the growth in Brazil is based upon positive trends in employment, services and industry. The Central bank of Brazil states that the new figures confirm that Brazil has already come out of recession.

The Brazilian economy has been helped by a surge in domestic spending, which increased 2.1% over last quarters figures and by a series of measures introduced by the Brazilian Government, chief among them the Minha Casa, Minha Vida scheme brought in to re-invigorate the domestic housing market.

Brazils construction industry was heading into decline after several years of strong growth and this scheme has reinvigorated the construction industry, which accounts for 5 per cent of Brazils gross domestic product.

The Minha Casa, Minha Vida scheme will receive another 10 Billion Reais in 2010 from the Federal Government. Brazil has a housing shortage estimated at 8 million units and this scheme was bought in by the Government to provide affordable housing and to stimulate the construction industry downturn caused by the worldwide economic crisis.

As a member of the Group of Twenty economies, Brazil follows Germany and Spain to emerge from recession. Both European countries posted growth of 0.3% in the same period.

Leslie Richards is a land consultant to Brazil land Invest and wrote this piece on the Brazilian economy and affordable housing sector. The author invites you to visit Brazil Land Invest for more detail about investing in Brazilian land and property in North East Brazil.

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Tags: affordable housing, brazil, construction, economy, finance, housing, investment, mortgage, Mortgages, property, real estate, tourism, travel

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