Brazil Hits Top Gear

Brazil is simply booming with an economy that hassecure investments, and as long as commodities... are
shifted into top gear and put its foot on thestrong in the global arena, Brazil will continue to grow
accelerator. The currency is strong, exports areand prosper," he told The Associated Press.
thriving and Brazil's foreign debt is non-existent. ANot only is this important for Brazil economically but
burgeoning middle class is taking advantage of thealso politically as well.
access to credit and millions of Brazilians are buying"Long-term, Brazil is going to be a major petroleum
homes and cars, allowing the economy to grow atpower," said David Fleischer, a political scientist at the
more than 5% a year. Bio-fuels and vast oil reservesUniversity of Brasilia. "It will enhance its importance in
have provided Brazil with energy independence andSouth America and the world as an energy supplier -
the government is using the money from theseand that translates into political power."
resources to irrigate the desert and pave highwaysA greater role on the political stage by Brazil would
across the Amazon.help them join the influential world bodies such as the
A boon to Brazil's good fortune is the newlyGroup of Eight industrialised nations and perhaps win it
discovered oil fields off the coast of Rio de Janeiro.a seat on the UN Security Council.
Haroldo Lima, Brazil's top oil industry regulator told"We're going to transform this country into a great
reports that the oil reserve could contain 33 billioneconomy and a great nation," Silva told his citizens in
barrels of oil, which would be the biggest find of oil inFebruary.
decades and could be the world's third largest.However it is hard to tell whether Brazil is in the midst
Despite this Petroleo Brasileiro SA, the state run oilof a social revolution that will break down the gap
company injected a note of caution to the good newsbetween rich and poor to create a much bigger middle
warning investors that offshore deposits areclass. Unlike in France there has been no bloody
notoriously hard to measure, let alone extract.revolution and no industrial revolution as there was in
However, this didn't deter investors who sentthe UK to announce it.
Petrobras stock up by nearly 10% in a single day."The potential is there. It looks better and better every
"We're already doing well, and if I look ahead, I think ityear. We just need to get our game together in turning
will only get better," said Antonio Bonchristiano, thethe potential into reality," Fleischer said.
Brazilian co-chief of GP Investments, Latin America'sIf you are interested in investing in Brazil then I would
largest private equity firm. He spoke at an economicrecommend looking at Vale, Petroleo Brasileiro,
forum in Cancun, Mexico, where excited investorsexchange-traded fund Brazil iShares, banks, Bradesco
compared notes on Brazil's potential.and Banco Itau Holding Financeira, steel makers
Clifford Sobel, the US ambassador to Brazil claims thatCompanhia Siderurgica Nacional and Gerdau, managed
the only way is up for Brazil as they leave their boomforestry plantation specialists Greenwood
and bust economic cycles behind.Management and wood pulp provider Aracruz
"As long as they have the ability to have a stableCelulose.
environment where people can make long-term,