Good Times For The Brazilian Economy

China is not the only country receiving so much attention among the world's emerging markets. While this country may have a larger profile as the world's second largest economy, Brazil is likewise making waves in the news headlines.
It is among the fastest growing markets today, bucking global trends and remaining resilient in the face of a global financial crisis.
While the developed world is in the midst of uncertain times, Brazil's banking system and its economy in general are receiving accolades for its robustness. One such accolade was given by the Financial Stability Forum last 2009 in Basel.
The Eurozone crisis and the slowdown in the US may temper the growth of this BRIC economy, but its fundamentals remain in-tact and poised for continued growth. To illustrate this, the International Monetary Fund (IMF) has predicted a year-on-year gross domestic product (GDP) growth of 3.6 percent for 2012. In contrast, the financing institution predicted growth rates of 1.8 percent for the US, 1.7 percent for Japan, 0.6 percent for the UK, and even a contraction of 0.5 percent in the Eurozone.
Brazil is rich in resources as it, along with the rest of South America, is considered to be the world's breadbasket. The presence of what is believed to be about 50 billion barrels of pre-salt offshore reserves near the southern coast of Brazil may also set the country up to be a major exporter of oil and gas. Potential oil discoveries are also currently being investigated in the northeastern side of the country.
Economic Development And Growth
More specific signs of economic development are also present.
Tourism in Brazil continues to be a significant source of income for the South American country, which enjoys enticing beaches and 290 days of sunshine all throughout the year. Brazil also has a large number of UNESCO World Heritage Sites, beaten only by five other countries in the list of 130 territories evaluated by the UN World Tourism Organization.
Likewise, major sporting events like the 2014 FIFA World Cup and the 2016 Rio de Janeiro Olympics have ushered in billions of dollars in infrastructure investments that would help the country's economy become larger in the long run through tourist inflow and job creation.
Brazil has also made extra efforts to liberalize its property markets and allow foreign entities to get access to them. Laws have been significantly relaxed in order to accommodate landlords and the real estate industry and they've simplified their labyrinthine sets of laws that was only stalling further growth.
As a result, analysts are now seeing an unprecedented rise in property prices, which has then positively affected the construction and mortgage sectors. Exame Magazine reports that apartment prices across the nation have risen by 24.7% in April 2011 as compared to the same month a year before.
Even then, Brazilians are still relatively debt-free. Secured lending in Brazil is only equivalent to about 5% of its GDP. Meanwhile, the US has 68%; Mexico, 11%; and Spain, 45%.