Brazil remains confident and poised, convinced that a U.S. recession will not affect neither the thriving domestic markets nor its related exchange traded fund(ETF). President Luis Inacio Lula da Silva said they are well-prepared to weather a United States recession because of thriving markets domestically, diversified exports and the elimination of foreign debt.

Alan Clendenning for Associated Press reports that Latin America’s largest economy is basking in a prolonged boom because of global demand for Brazilian ethanol, iron ore and agricultural products. Its gross domestic product (GDP) is expected to grow at least 5% per year through 2010, as big-ticket items such as homes and cars are readily consumed. Their domestic market is around 190 million consumers and growing.

People are buying more and exports are growing since Brazil does not depend on the United States and Europe alone anymore. Exporting is on a more global level and this leaves Brazil tranquil in the face of an American crisis.

For single-country exposure, check out the iShares MSCI Brazil Index (EWZ). It’s up 4.5% year-to-date, and up 21.1% since Jan. 22.

For full disclosure, some of Tom Lydon’s clients own shares of EWZ.

Tags: Agriculture, Brazil, Emerging Markets, EWZ, Latin America, Material ETFs, Metals

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