HSBC: Brazil will see long-term success
Brazil real estate owners will see long-term success for their currency and equities in the country, a new report has predicted.
HSBC Global Asset Management said that Brazilian equities and the currency will remain robust in the future, despite a two per cent tax on foreign exchange inflows, which will cause short-term problems.
Jose Cuervo, manager of a Brazilian equity fund for HSBC, said that short-term volatility will follow the introduction of the tax, which is charged on any purchases by foreign investors.
However, Mr Cuervo added that the drivers for equities in Brazil remain positive with the economy showing good signs and gross domestic product rising by 1.9 per cent, quarter-on-quarter, which is welcome news for Brazil real estate owners.
Brazil’s president, Luiz Inacio Lula da Silva, is also very positive about the country’s economy, saying that he is optimistic about the future after a good 2009, reported MercoPress.
The premier was speaking on his radio programme, Breakfast With The President.
