Brazil’s ETF: Emerged from the Recession?
July 20th at 1:00pm by Tom Lydon
Brazil’s economy is now being forecast to grow at a faster rate than many anticipated it would, a situation that’s positioning related investments and exchange traded funds (ETFs) to potentially take advantage, as well.
- This year, Brazil is forecast to grow around 4% to 5%, as the Central bank is set to cut interest rates in order to spur more growth, according to Alexander Ragir for Bloomberg.
- The Brazilian real has risen to nine-month highs as strong corporate earnings have come in, and rising equity prices are mixing with high metals prices to bolster the Brazilian economy, reports Fabio Alves for Bloomberg reports.
- Ana Nicolaci da Costa for Reuters notes that Brazil will not need an added fiscal stimulus, as the country has almost emerged from the recession. The primary budget surplus is under scrutiny, as this is a gauge of a country’s ability to service its debt. The OECD expects Brazil to have a primary surplus of 2.3% of GDP this year.
- iShares MSCI Brazil Index (EWZ): up 55.6% year-to-date
- WisdomTree Dreyfus Brazilian Real (BZF): up 17.9% year-to-date
For more stories about Brazil, visit our Brazil category.
