Goldman Sachs Forecast on Brazil Overly Cautious?

Jim O'neill, Goldman Sachs chief economist has said that the Brazilian economy has come through the global economic crisis extremely well and is set for 5% growth in the next few years.

His statements have been picked up by the media but no one has mentioned that 5% growth is a very cautious forecast for the Brazilian economy's growth in the next few years.

Brazil is a production powerhouse, with the potential to become one of the world's biggest exporters. Despite its having among the largest stocks of cattle in the world, Brazil is also embracing the world's great growth sectors like renewable energy, thus future proofing the economy to as great an extent as that is possible.

Brazil's economy grew at 5.4% in 2007 and 5.2% in 2008, so to say it will resume growth at a similar rate in the next few years is a very cautious forecast indeed. Especially considering other countries in the region like Panama, which grew at around 10% in the past few years.

The global financial crisis did great damage to Brazil, but after such a scything growth should restart at an accelerated level, because the environment is conducive to greater growth.

This is true in the property market as well. Because Brazil property prices haven't grown in the way that they were forecast to, and probably won't this year, this means that international investors can still pick up some great bargains in the country -- although they will be disappointed that prices haven't fallen.

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Canada Signs Free Trade Deal With Panama

Canada has signed a free trade deal with Panama, which will immediately slash tariffs on exports between the two countries by up to 90%.

The deal will be mutually beneficial, because, though Canada exports far more than it imports from Panama and vice-versa, both will be able to import goods cheaper, because prices will not have to factor in the tariffs.

Panama's imports from Canada, and many other places around the world are vital to its economic emergence.

Panama's economy grew by over 9% last year, and is expected to grow by over 3% this year according to the International Monetary Fund. Therefore this is a savvy move by Canada, as Panama's imports are likely to drop by a lesser margin than that of recession-hit countries.

The US proposed a similar deal with Panama last year, but it has been stalled and now looks likely to be shelved in favour of new policies by the Obama administration.

In 2008 Canada's top goods exports to Panama were:

• Vehicles, including diesel
• Electrical and electronic equipment
• Aerospace (primarily flight simulators)
• Pharmaceuticals
• Pulses (primarily lentils)
• Frozen potato products

The top exports to Canada from Panama were:

• Mineral fuels and oils
• Fruits and nuts
• Fish and seafood products
• Spices
• Coffee
• Mineral ores (primarily silver ores and concentrates)

In 2008, Canada exported six times the amount of goods that it imported from Panama.

Panama's incredible economic present and future continue to make it increasingly popular with overseas property buyers and investors. View Panama property for sale