Brazilian economy to grow faster than expected, report says
The Brazilian economy is set for greater growth than originally forecasted as the local currency strengthens, according to a report.
Major Latin American bank Itau Unibanco Holding predicted that the country’s financial system will expand by four per cent, according to Bloomberg.
The forecast suggests that the South American nation will recover from the global recession faster than expected as the previous estimate for growth stood at 3.7 per cent, which may be good news for Brazilian property investors.
Itau’s chief economist Ilan Goldfajn wrote in the report that the reais will strengthen to 1.80 per dollar by the end of the year and to 1.70 against the US currency by 2010, according to the news agency.
These are also improved predictions on the 1.95 reais per dollar for 2009 and two per dollar by the end of 2010 originally forecast by the bank.
The report follows analysis by Joan Magee, who wrote for Dow Jones newswires that the Brazilian property market is set for an upsurge due to the country’s economy improving.
