Are Brazil Property Prices Heading into a Collision Course?
In recent years, Brazil’s housing market has been in the unique position of being supported by a strongly excelled economic climate – particularly in comparison to several developed countries worst hit by the effects of the global recession. When its GDP briefly went into the red in 2008/09 (along with many economies of the world), the government swiftly altered monetary policy by bringing the national interest rate to a historical low as well as amending fiscal policy and making other reforms to encourage activity. What ensued resulted in a relatively rapid recovery as well as the international spotlight being cast further on the country as a future economic superpower. The country’s leaders have been pointing to the housing industry as one of the prominent lynchpins in the demonstration of such growing importance of Latin America’s largest nation. However, some economists fear the emergence of a housing bubble which has subsequently triggered an ongoing public debate with regards to
