Poised for a comeback: Brazil faced its share of turmoil in 2015 and 2016; will 2017 hold something different?
The year 2016 was definitely one of transition for Brazil, a country once touted along with the other BRIC members as “the next big thing.” But emerging markets are not in favor currently, and Brazil has had a tough run for the past two years, according to Waiting for the other shoe to drop in Sao Paulo: Is 2017 the time to consider real estate investing in Brazil?, a report by InDev Capital. The numbers speak for themselves:
- GDP contraction of approximately 10 percent in three years; worst economic contraction in Brazil’s history
- Unemployment rose from 4.8 percent to 11.8 percent in three years
- Inflation rose from 5.9 percent to 10.7 percent in two years
- Interest rates rose from 7.25 percent in 2013 to 14.25 percent in 2016 (but have since been lowered to 13.00 percent in January 2017)
- Debt as a percentage of gross national product rose from 60 percent in 2013 to