Brazilian economy getting sweeter by the day
The Brazilian economy is looking up and consumers are feeling more confident, according to the latest consumer confidence update from the Getulio Vargas Foundation (FVG). The FGV figures show that consumer confidence has shot up for the second month in a row, taking it from 64.9 in December 2015 to 68.5 in February.
Increased optimism about the coming months and growing satisfaction with their families’ finances were two of the reasons cited by consumers for their fresh outlook on the Brazilian economy.
At the same time as consumer confidence has improved, so has the popularity of President Dilma Rousseff, bringing hope of improved political stability, as a newly released poll showed a nearly 8% improvement in the public’s approval rating of her government.
The sugar industry is also contributing to Brazil’s new spirit of positivity. El Nino’s rains have led to excellent cane growth, with the country’s main cane belt expected to produce a record harvest for 2016/17. At the same time, the potentially drier Brazilian winter should increase the level of sugar content in the cane, meaning more sugar at no additional cost to the growers.
Prices in the local currency are hovering around near record high levels, with the first global sugar deficit in six years (due to El Nino’s negative effects on India, Thailand and the EU) meaning that demand for Brazil’s anticipated record crop will be at peak levels.
Sugar is defying the global commodities rout, with the chief executive of Biosev SA, Rui Chammas, commenting,
“As the projections for the global deficit increase, the cycle of low prices seems to be a thing of the past.”
Such signs of positivity have caught the attention of global investors with an eye for the right time to get into overseas markets. Paul Telfer, chief financial officer of award-winning property developer Ritz-G5, which develops projects in Natal in the northeast of Brazil, explains,
“Many property investors are on the look out for signals just like those that Brazil is giving out at the moment. A carefully timed investment at the point when a country’s economy starts to show signs of improvement can mean impressive returns. There’s also the fact that the loss in value of the Brazilian real has meant property investors can get much more for their money. There’s a lot of interest from overseas in Brazilian real estate right now.”
Interest in Ritz-G5’s Palm Springs luxury beachside condominium development has been so strong that the company has launched an extension to the development, Dunas de Muriu. Sited just off the idyllic Muriu Beach in Natal, the stylish and contemporary build is inspired by the area’s sweeping sand dunes. The 250 luxury apartments will allow residents to lap up the spectacular ocean views, while also providing access to the tropical oasis of Palm Springs, with its natural springs, spa, hot tub, swimming pool and sauna.
With investors eyeing up Brazil keenly, Dunas de Muriu is precisely the kind of real estate development that will be sought out by those looking to profit from property at just the right time.
For further details, contact the Ritz-G5 team on +44 207 183 7565 or visit www.ritz-g5.com.