The worldwide financial crisis is expected to put a serious damper on growth in 2009, according the International Monetary Fund (IMF). Managing Director Dominique Strauss-Kahn said recently that growth for 2009 will be virtually nonexistent across the globe, with major markets looking to contract. He indicated that emerging nations will take a hit economically, but that countries such as Brazil will in good shape overall and account for the growth that does take place.
The IMF is predicting that the economy in Brazil will grow 3.5% next year, which is down a bit from recent years when it has been between 5% and 6%. Mr. Strauss-Kahn said that “Brazil is an economy in good shape. But even in good shape, the effect of the downturn in global growth will have consequences.”
The property market in Brazil is in better shape than much of the country, according to reports. The northeast coast of the country is particularly well off and should see continued growth, with cities there experiencing tremendous growth and interest in property from both domestic and international buyers.
Anoop Singh, Director of the IMF’s Western Hemisphere Department, praised countries in the Caribbean and Latin America, including Brazil. “Policy makers in the region remain on very high alert to dealing with the current shocks as well as additional risks such as volatile commodity prices,” Mr. Singh said. With a good economy and strong economic policies, these countries will do better than many in 2009.
Useful Resources
