Brazilians Spend Less But Economy Still Tipped To Grow
Consumers in Brazil are spending less than before as concern surrounding the global economic crisis spreads, although the economy is still tipped for growth in 2009, Bloomberg reports.
A survey of 16 economists by the news provider suggests retail, supermarket and grocery sales rose by 8.7% in the year to the end of September, which is down on the 9.8% figure recorded last month.
What's more, Zeina Latif, economist for ING Bank NV in Sao Paulo, believes decline consumer sentiment could see sales fall even further.
"Retail sales slowed more starting in September, when credit became more scarce," he told Bloomberg.
"Consumers are getting concerned and may hold back on shopping even more."
However, economists expect Brazil's economic growth to remain insulated from the global economic crisis.
A central bank survey suggests Brazil's economic growth will remain positive at 3% this year, although this is down on the original 5% estimate.
This means property market speculators are likely to continue seeing the country as a viable location for investment.
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