Nothing to Sneeze At: Brazilian Economic Recovery Good for Coral Gables, Miami, South Florida Office, Home Markets

on Thursday, 05 September 2013. Posted in forte related

Nothing to Sneeze At: Brazilian Economic Recovery Good for Coral Gables, Miami, South Florida Office, Home Markets

It’s long been said that “When the U.S. sneezes, Latin America catches a cold.” Why? Because the economies of Central and South America historically have been so dependent upon the health of the U.S. economy, that if we faltered, they faltered – often worse. As developers in Coral Gables and Miami commercial and office space, as well as luxury residential properties, we know this.

What about when economies recover? If the U.S. returns to good health, do Latin American economies, too? It seems to be that way.

Just look at Brazil. Though some may argue the U.S. recovery had only a minor role in that nation’s – even the region’s – recovery, news from Brazil is bullish.

It’s long been said that “When the U.S. sneezes, Latin America catches a cold.” Why? Because the economies of Central and South America historically have been so dependent upon the health of the U.S. economy, that if we faltered, they faltered – often worse. As developers in Coral Gables and Miami commercial and office space, as well as luxury residential properties, we know this.

What about when economies recover? If the U.S. returns to good health, do Latin American economies, too? It seems to be that way.

Just look at Brazil. Though some may argue the U.S. recovery had only a minor role in that nation’s – even the region’s – recovery, news from Brazil is bullish.

According to news reports, Brazil is continuing to see recovery. During the second quarter, the Brazilian economy grew by 1.5 percent, which calculates to an annualized rate of 6 percent. This surprised some analysts and government officials, the Miami Herald reports.

Should we care in South Florida? Yes, we should care – deeply. Brazilians are entrenched across the local economy. They’re investors in businesses. They’re home buyers in Coral Gables, Miami Beach and across the region. The nation is the region’s biggest trading partners. And its biggest export: Tourists.

So as Brazil continues to grow – the 1.5 percent growth in GDP was the strongest growth quarter-over-quarter since 2010 and was at a pace that surprised analysts – so do our tidings. Fears of inflation are calming. A country that just a few years ago was loved the world over for strong growth – even placed in the same acronym as Russia, India and China, or the “BRIC” countries – floundered, and now is rebounding.

Flights to Miami International Airport from the country are 100 weekly, the paper noted. Brazilian tourists are flocking to South Beach and our retail destinations. Trade into ports from Key West to Palm Beach tops $8.17 billion, up almost 2 percent from 2012, according to reports.

Not to get all Economics 101 here, but suffice it to say Brazil’s recovery is good for the local market, whether you own and lease office space or have a luxury home you’re looking to sell.

Maybe it’s been said that “When the U.S. sneezes, Latin America catches a cold.” But when Latin America recovers, in U.S., South Florida and across Miami-Dade County, we feel better, too.

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