We've seen Brazil in the headlines quite often lately -- from winning the 2016 Olympics to the most recent blackouts. In general, though, investor confidence in Brazil's economy and outlook is rising as we've continued to receive good economic news from the country.
As I discussed before, Brazil emerged from its recession in the second quarter with GDP growth of 1.9% from the first quarter of the year. And Brazil's economy is now projected to grow at least 0.2% this year and upwards of 5% in 2010.
That's very solid economic growth. And much like China, that internal growth and increased domestic consumer demand makes Brazil look very attractive to me right now.
In fact, the World Bank expects Brazil to become the fifth-largest economy in the world by 2016 with much of this economic growth spurred on by not only spending for the 2016 Olympic Games but also increased spending for the 2014 World Cup soccer championship. Both of these events combined have the potential to add 3% to 4% GDP growth.
Additionally, these events will be driving job creation -- domestic demand is expected to boost hiring in Brazil. Construction, retail and tourism will push job creation to an impressive 2 million next year, up dramatically from 1.1 million in 2009.
That expected domestic demand and necessity of improving the country's infrastructure will increasingly benefit my two Asia Edge plays on the coming growth and build-out of Brazil…
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