Second quarter growth in Brazil exceeded all expectations with GDP expanding at 8.8% compared to the same period a year earlier. According to the AP, the Brazilian Finance Ministry had forecast growth of between 0.5 percent and 1 percent for Q2.
Brazilian equities have nearly doubled this year, far outpacing the U.S. stock market. The iShares MSCI Brazil Index Fund (EWZ) is up 98% year to date compared to 17% for the SPDR S&P 500 (SPY) over the same time period.
Currently in 3rd place in terms of Latin American oil production, Brazil promises to soon overtake regional leaders Mexico and Venezuela.
Unemployment is at a 14 year high according to figures released by the Labor Department last Friday. The unemployment rate spiked to 6.5% in October from 6.1%.
A quick way to get diversified exposure to Brazil is through an ETF. A well established Brazil ETF is the iShares MSCI Brazil Index Fund (EWZ).
A few weeks back, we presented the investment case for Brazil in our post The Case for a Brazil ETF. Despite signs of slowing economies in other parts of the world, Brazil continues to deliver good news.