Real Estate Copacabana

An old neighbourhood like Copacabana have had an extreme realestate boom.
Not construction as there is not room for more buildings but boom in prices.

Last few years prices have increased drastically.
(You can see the current prices on a site like CopacabanaImoveis).
If one considers that the Dollar currently is worth 1,7 Real one realize that one could get a very good apartment in the US or Europe for the same price one would have to pay in Copacabana.

Copacabana is as mentioned an old area. Technically it is young historically but as the building boom was happening in the 50s and that there is not much room for new construction – one will have problem finding apartments much younger than 30 years. So prices is not only high with 200.000 US$ for a small apartment but the building standard is also not all that high.

Prices in other regions outside of the central area can be seen in sites like the one belonging to Hamaita Imoveis.
The largest site with apartments for sale in the whole region of Rio de Janeiro is ZAP.
Or if one would like to check prices in more upscale area one has Leblon Imoveis.

Posted in Brazil Economy

Lover trade surplus with China

Brazil have as a raw material producer been one of the countries with trade surplus with China.
Economists epected this to be US$ 23,4 for august but the result were much weaker with US$ 17,8.
As reported by Oglobo (Portuguese)

One of the main factors for the weaker result is the increased import of Chinese goods from China.
An increase of 24,5% from the imports in 2010. Partly this have been due to a very strong Brazilian Real.

Brazilian Real have weakened considerably since august – it will therefore be interesting so see the results next few months.

Other brazilian related links:
The Rio Tours

Posted in Brazil Economy

Inflation cooling down

With almost perfect timing as several unions have been threatening with strikes partly due to inflation, inflation is cooling. According to the cooling is primarily driven by lower fuel prices. With drop of more than 3% in fuel prices total transportations costs also declined.

Fuel prices is however very volatile so in itself this is not particular good news.
Even though prediction by many economists is lower inflation looking forward.
Not that economists are particularly good at predicting economic data.

Rio Tour USA Politics Rio Tours

Posted in Brazil Economy

China will order planes from Brasil

Acording to Brazilian magazine Exame China will order planes from Brazil in the occasion of the visit of Brazilian president Dilma Rousseff.

Brazils trade with China have long been characterized of buying finished products in exchange of selling raw material.
Embraers problem have been licensing of imports of their products. In other words controlled by the government.
Lately there have been more focus in Brazil about artificial low Chines currency and naturally low Dollar. Causing problems for export and sale of industrialized products.

Brazilian related links:
Learn Norwegian

Posted in Brazil Economy

High inflation for 2011

Brazil have for a long time had problem with inflation and resulting high interest rate.
According to recent reports this will continue until it cool down in the last quarter of 2011.

The interest rate also recently got increased to 11.75%.
Brazil have for a long time had problem with strong currency due to high interest rates.
Hurting export of produced goods.

Alternative cenario is therefore that instead of high inflation the result can be decreased growth for the end of 2011.

Brazil related links:
Rio Turisme (in norwegian)

Posted in Brazil Economy

Sales highest increase in 9 yrs

Facts from IBGE (Instituto Brasileiro de Geografia e Estatística). Domestic sales increased by double digits in 2010. The highest increase since 2001. Total salesincreased by 10,9%. Sale of household appliances grew 18,9%. Informational technology and communications 24,1%.

The growth were flat for december. And the moving average were 0,28% for the last quarter.
Difficult to know if this a new trend for weaker growth in 2011.

Brazil do have high interest rates – however it is more common than not to buy products in installments. Growth in sales can therefore get inflated.

Rio de Janeiro links:
Apartamento Rio

Posted in Brazil Economy

Renault see growth in Brazil

Renault see Brazil as theirs second largest market by 2013.
Therefore surpassing Germany and Russia becoming the 4th largest market.
According to Terra Economy.

Brazil is for many brand names a clean start. Toyota and Honda have higher status than Chevrolet due to being import cars and therefore having higher price and becoming more of a luxury car. Other brands like Renault, Fiat and Citroen also is becoming respectable brands.

Brazil have large import taxes on cars – up to 100% of the value of the car. Giving huge advantage to whatever company that are willing to start a factory in Brazil.

Other sites abut Brazil:
Rio Guide MBergo The Rio Tour Rio Guide Magne Bergo

Posted in Brazil Economy | Leave a comment