Brazil is one of the planet's most important economies. It is the 14th strongest economy in the world, but there are experts who are convinced that if the Brazilian administration were to apply stricter controls it would occupy fourth or fifth position. The country is the second most important world exporter of prime agricultural materials and has inexhaustible mineral supplies and is an oil producer.

Despite the recent crisis concerning the bribing of certain government officials which is affecting the country, the Brazilian economy is showing stable growth, which demonstrates its independence from the occasional political scandal. These problems have not worried the international investors in the slightest as any risk in the Brazilian economy is extremely slight.

In the opinion of Miguel Ángel García, investment manager of Deutsche Bank Private Wealth Management, "Brazil has stumbled but the economy shows excellent signs". The confidence shown in the Brazilian economy by international investors is demonstrated by the strong appreciation of the Brazilian real of almost 22% against the euro so far this year. No other currency has appreciated so much against the euro.

The economic indicators are reaching historic levels: exports are higher than ever, foreign investment is growing at an unprecedented pace, the commercial balance is registering historic superavits, the currency is being revalued, inflation is under control (at 5%) and the debt/GDP ratio is falling.

With a Gross Domestic Product of more than 600.000 million dollars, the 280.000 million dollars of exterior debt have ceased to be a problem. So much so that president Lula decided to prescind the credit program of the IMF as being unnecessary and in order to save on interest payments, Brazil is making advance payments to the IMF; a sure sign of strength.

According to recent statements made by the U.S. Treasury Secretary John Snow, Brazil constitutes a "brilliant example" of a strong and stable economy. Good proof of this is that 95% of foreign investment in the Mercosur area is made in Brazil.

Foreign investors are making for Brazil en masse, as much for the excellent growth figures in company profits as for price levels which remain low compared with developed markets. Brazil is an emerging market with a good sustained growth and more than reasonable prices, especially when looking at investment in real estate. At present there is no doubt that Brazil is an excellent alternative for real estate investment.