Brazilian GDP growth is expected to be up 6% despite general election

The global economy is at last enjoying a return to growth, albeit slowly, and given the progress so far we are very positive in our outlook for Brazil.

Brazil’s general elections are due in October 2010 and President Lula is not eligible for re-election, as he has already served the maximum allowed two terms. But despite the uncertainty that often characterises election years we anticipate GDP growth to be close to 6% in 2010, up from an expected 0% in 2009. The Brazilian economy is very diverse and presently most sectors are performing well. However we believe the domestic consumption story will be key as there has been positive employment data and good credit growth. Another driver of growth in 2010 is likely to be infrastructur...