Brazil's reputation as a prime investment destination 'improving'
Brazil's reputation as a prime destination for investment has improved considerably over the last few years, according to an asset management company.
F&C Investments cites the upgrading of Brazil's debt profile from ratings companies as evidence of the country's strengthening economic position, with two out of three ratings firms ranking the country only one grade below full investment standard.
This contrasts with the situation seen five years ago, when Brazil was heavily in debt and even in danger of defaulting. Now, however, debt has decreased and interest rates have fallen to stimulate domestic consumers and foreign investment into the country - with increasing property returns in the cities being one benefit.
Explaining Brazil's attractiveness to investors, Urban Larson, director of the F&C Emerging Equities fund, commented: "Brazil has built up a high level of foreign reserves and the public sector is now a net external creditor."
He concluded by saying that this represents a "substantial improvement" in the amount of risk that investors in the country are exposed to.
Last month, the Brazilian government claimed that the country is well on track to achieve sustainable and long-term growth.
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