According to The Washington Post, Brazil’s gross domestic product (GDP) expanded four percent on an annual basis in the first three months of 2023; the country’s rate of inflation is at 3.9 percent; CPI is seen finishing the year at 5.42 percent; and the Selic (Brazil’s federal funds rate) is currently at 13.75 percent.

On June 14, 2023, S&P Global Ratings revised the outlook on its long-term global scale ratings on Brazil to positive from stable, stating that “[t]he positive outlook reflects signs of greater certainty about stable fiscal and monetary policy that could benefit Brazil’s still-low GDP growth prospects.” Nasdaq (citing data from IBGE) reports that retail sales in South America’s most populous country rose 0.1 percent in April compared with the previous month and sales also increased 0.5 percent on a yearly basis in April.

According to Mordor Intelligence, the size of Brazil’s Commercial Real Estate market is $37.71 billion this year and is anticipated to register a Compound Annual Growth Rate (CAGR) of over four percent during the forecast period 2023 to 2028. Average asking rent for high-end office space in São Paulo was BRL 89.18/sq. m/month in Q1–2023 and the vacancy rate stood at 24 percent, according to Newmark’s Sao Paulo Office Market Report. In Rio, the average asking rent (Class A office, CBD A) was BRL 84.73/sq. m/month in Q1–2023, with the vacancy rate at 27.5 percent, according to Cushman.

Last Updated on June 19, 2023 by Ramin Seddiq