Brazil’s policymakers’ fiscal and monetary actions enabled the country to regain its footing in the first half of this year. Leading indicators suggest that the there could be a speedy return to Brazil’s recent growth rates, reports Latin Business Chronicle. (Why this is just the start of the trend).

As the real has picked up its value, other countries and economies are not faring as well. Spain’s economy has lagged most of the other Euro nations, despite the return of investors. That’s despite Banco Santander raising $8 billion – more than three-quarters of which came from international investors – in early October when its local unit made its stock market debut. It was the world’s largest IPO this year. Read more on Spain here.

Brazil’s exports have been strong, thanks to demand from China for soy and iron ore. The improvement is also in part because of improved trade links with Asia and Africa. (Why ties like this are important for future growth.)

With the continued export diversification and active trade policy, along with a large and growing domestic market, the unique structure of Brazil’s economy could keep the country on top. (What else is shifting in Brazil to support economic growth.)

For more stories about Brazil, visit our Brazil category.

• iShares MSCI Brazil Index (NYSEArca: EWZ): up 118.4% year-to-date

• iShares MSCI Spain Index (NYSEArca: EWP): up 39.7% year-to-date

• SPDR S&P China (NYSEArca: GXC): up 64% year-to-date

The 10.2% unemployment figure is far worse than what economists had expected, and they don’t see any sign of relief until next year. While the pace of layoffs has slowed, the unemployment rate is continuing to climb, reports Javier C. Hernandez for The New York Times.

Unemployment isn’t just as issue here, either; millions around the world don’t expect to see relief in the form of jobs anytime soon. The European Union forecast unemployment in the eurozone to rise to 10.7% in 2010, up from 9.5% this year. Unemployment ranges from 3.5% in the Netherlands to 18.3% in Spain, reports Greg Keller for the Associated Press. In China, the official urban unemployment rate is 4.3% in the third quarter. Brazil’s unemployment was 8.1% in August, almost unchanged from the previous month.

Gold futures have soared to a record $1,100 an ounce today. While some profit-taking briefly sent gold lower, it resumed its course and analysts expect it to continue to move higher, reports Allen Sykora for The Wall Street Journal. SPDR Gold Shares (NYSEArca: GLD) is up about 0.4% year-to-date. (More on gold can be found here).

Businesses slashed inventories for a record 13th straight month in September, although sales rose for the sixth consecutive time. Many hope that improving sales figures will encourage businesses to start lifting production, although a rising jobless rate heightens fears that consumers won’t start spending anytime soon, reports Martin Crutsinger for the Associated Press. (An ETF to play holiday shopping).

The world’s largest insurer, AIG (NYSE: AIG) reported that it was profitable for the second consecutive quarter. Although things have stabilized, the company’s CEO said that earnings will remain choppy while they restructure.  SPDR KBW Insurance (NYSEArca: KIE) is up about 0.6% this morning.

G20 Finance Ministers are meeting this week to discuss financial reform and economic recovery. While these economies have put in place certain policies in order to push along a recovery, they’re not policies anyone wants to keep in place forever. The general consensus is that it’s too soon to reverse the measures, but it’s not too soon to begin talking about when and how it would happen. Government debt in developed G20 countries is likely to reach 118% of annual national income in 2014, reports Andrew Walker for the BBC.

For more stories on the global economy, visit our global ETF page.

According to Gary Gordon for ETF Expert, there is a slight discernible difference between the five largest net exporters and net importers as shown in their respective ETF growths.

Net importers’ five-year total % change:

• Vanguard Total U.S. Market (NYSEArca: VTI): 12.8%
• iShares MSCI United Kingdom (NYSEArca: EWU): 10.7%
• iShares MSCI Spain (NYSEArca: EWP): 91.7%
• iShares MSCI France (NYSEArca: EWQ): 35.1%
• The India Fund (NYSE: IFN): 129.4%

Net exporters’ five-year total % change:

• iShares FTSE China 25 Index (NYSEArca: FXI): 173.9%
• iShares MSCI Germany (NYSEArca: EWG): 53.9%
• Central Europe/Russia Fund (NYSE: CEE): 91.3%
• iShares South Korea (NYSEArca: EWY): 90.5%
• iShares MSCI Netherlands (NYSEArca: EWN): 46.3%

The data shows that percentage gains are leaning toward exporters and developing countries, more export-dependent, are producing larger percentage returns.

Gordon makes the distinction that successful investing in seemingly export-type countries is more dependent on overall economic growth and less to do with the large “net exporter” moniker.

For more information on ETF trends, visit our trend following category. Read more of Gary Gordon’s ETF observations at ETF Expert.

Max Chen contributed to this article.

The International Monetary Fund (IMF) projects Spain’s unemployment rate to top off at 20.2% in 2010 after hitting 18% by the end of 2009, according to Barcelona Reporter. The IMF also estimates that the country’s gross national product (GNP) will fall 3.8% this year and diminish 0.7% next year.

The economic adversities afflicting Spain can be traced back to the construction industry, and housing prices are forecast to fall for a minimum of 12 months. For more stories on how the downturn has affected Europe, click here.

The Spanish banking giant Banco Santander, S.A. (NYSE: STD) plans to sell around 16% of its Brazilian operations for $7 billion, accounting for 18% of profit, and the unit was priced around 10% above the price-to-earnings multiples on competitor banks, writes Don Dion for TheStreet.

Potential investors of iShares MSCI Spain Index (NYSEArca: EWP) should note that unemployment, manufacturing and retail data, along with low interest rate mortgage, may elevate risks to investing in EWP, comments Dion. EWP’s good performance so far may be because of the high allocation into financials, with a 46% weighting, and low allocation to materials.

• iShares MSCI Spain Index (NYSEArca: EWP): up 36.5% year-to-date; Banco Santander is 23.2%

For more information on Spain, visit our Spain category.

Max Chen contributed to this article.

According to mortgage specialist Conti, property investors looking to snatch up houses overseas are sticking to proven, more traditional locations for long-term investment, according to NuWire Investor.

Locations of interest has France in the lead with 31% of inquiries received by the company, followed by Spain with 22%. Turkey remains in third with 13%, Portugal in fourth and Italy in fifth. Location interest is waning in countries such as Bulgaria and the United States.

• France. France has a relatively stable market. The country’s financial system is eager to lend to foreign investors, so much so that it may be possible to borrow up to 100% of the property value. Interest is low and many property sellers are still dropping prices.
• Spain. Buyers have a large selection of available properties and the benefit of low interest rates. But there are problems with exposure to corrupt licensing laws or land grab issues.
• Turkey. Turkey is situated in a nice Mediterranean location and overseas buyers won’t be up against a strong euro. Tourism is on the rise, which should increase demand for quality rental properties in tourist areas.
• Portugal. Portugal has seen a drop in interest rates and lower property prices, with some locations down 30%. Recently, the country reported an end to its recession.
• Italy. Italy can yield profitable acquisitions in more popular areas with international tourists.
• Bulgaria. Lenders have been in a bind with development and the market has a glut of  buildings. The result is a steep drop in valuations and banks are questioning asset security, which inevitably has lead to lower overseas demand.
• United States. The main reason overseas buyers look to the United States is because of a depreciating dollar, which has made properties cheaper.

• SPDR Dow Jones Wilshire International Real Estate (NYSEArca: RWX): up 36.4% year-to-date; France is 11.3%, Italy is 0.14%

• iShares FTSE/NAREIT Global ex-U.S. (NASDAQ: IFGL): up 41.8% year-to-date; France is 7.1%, Italy is 0.2%

For more information on the real estate sector, visit our real estate category.

Max Chen contributed to this article.

Germany and France both reported increases in growth and the numbers have convinced some analysts that Europe’s economy is recovering, perhaps even faster than that of the United States’, reports Charlie Parker for Citywire.

There are some risks, though:

• Some economists think, however, that the improved numbers may not be a show of overall economic strength but rather a fall in imports as exports remain the same, which would come up as a stronger net trade.

• The unemployment rates in Germany and France may also be misleading because of the larger public sector. It is seen that the fall in production in Europe did not reflect an equal fall in unemployment. The economies could suffer later from the excess weight.

• The European Central Bank has cut its benchmark interest rate to a record 1% low and begun a $86 billion program of buying assets, writes Simon Kennedy for Bloomberg. Officials are regarding the economic recovery with caution and won’t be reversing their policies any time soon.

• The ECB projected that the European economy may contract 4.6% this year and contract 0.3% in 2010. Deutsche Bank estimates a 1.3% contraction next year and UBS AG predicts 2.1%.

One way to access the European market is through the PowerShares FTSE RAFI Europe (PEF) ETF. PEF, currently up 42% year-to-date, tracks the performance of the largest European equities in the FTSE RAFI Europe Index, which normally invest 90% of its total assets in securities that comprise the Index and ADRs based on securities in the Index, as stated by InvescoPowerShares. The ETF has 526 holdings with an expense ratio of 0.75%.

• Country allocations: United Kingdom 30.6%, France 14.7%, Germany 13.3%, Italy 7.6%, Switzerland 6.4%, Netherlands 5.8%, Spain 5.3%, Sweden 4.0%, Ireland 2.6%, Belgium 2.5%

For more information on Europe, visit our Europe category.

Max Chen contributed to this article.

Spain’s GDP declined 1% from the previous quarter and contracted 4.1% year-over-year, reports Matthew Saltmarsh for The New York Times. The weakness of the economy is mainly attributed to the collapse of a debt-fueled construction boom. According to Eurostat, the unemployment rate was 18.1% as of June.

Prime Minister José Luis Rodríguez Zapatero’s plan is to revitalize Spain is by investing in education, infrastructure, research, biotechnology and renewable energy without reducing workers’ rights and also increasing government unemployment benefits, report Rachel Donadio and Victoria Burnett for The New York Times.

Small- and medium-size businesses, which make up 90% of companies in Spain, are faltering under high social benefit policies the government has imposed. The business sector demanded lowering costs to the social security system and that the cost of firing or laying off workers be reduced, but talks have broken down.

Experts remain incredulous, believing Zapatero’s wishful thinking lacks a laid-out plan for medium-term job creation or means of financing such social policies. Zapatero did mention, however, that he might take on more debt to finance the endeavors.

• iShares MSCI Spain Index (EWP): up 29.8% year-to-date

For more information on Spain, visit our Spain category.

Max Chen contributed to this article.

When Gary Gordon wrote about the three most impressive ETF movers in the last month, we thought we could expand on his premise and include some other areas that investors are picking up on during dips in the market place.

In Taiwan, tech companies are leading the economy. This sector in Taiwan is increasing job opportunities to grow the burgeoning firm’s global name brands such as Asustek, innovator of the “netbook,” and Acer, manufacturer of powerful yet cheap PCs that may become the world’s second largest PC maker.

• iShares MSCI Taiwan Index (EWT): up 44.7% year-to-date; up 14.4% in the last month

Turkey has some factors in its favor: the central bank has reduced rates to its lo a record low, consumer confidence is on the rise and jobless claims are declining. But the country is not completely out of the deep yet.

• iShares MSCI Turkey Invest Mkt Index (TUR): up 46.9% year-to-date; up 12.2% in the last month

Spain’s GDP will drop but not as severely compared to the first quarter, according to Reuters. The Spainish economy contracted 1.9% in the first quarter and is expected to shrink 3.6% in 2009 and 0.6% in 2010. Economic stimulus plans are likely to have increased public deficit above 10% of GDP this year.

• iShares MSCI Spain Index (EWP): up 12.3% year-to-date; up 10.5% in the last month

The semiconductor sector is on the mend with demand picking up once again, but has yet to reach numbers previously seen. Overall, the industry is still cutting back to do away with the excess fat and build up efficiency. Tech companies are lowering their forecasts.

• Semiconductor HOLDRs (SMH): up 21.8% year-to-date; up 1.7% in the last month

Homebuilders should have been elated to hear that June housing construction rose to its highest level in seven months as builders rushed to pour foundations to enable first-time homebuyers to take advantage of tax credits. Commerce Department reported that construction of new homes and apartments jumped 3.6% last month. New housing starts and permits have risen for the second straight month in June.

• iShares Dow Jones US Home Construction (ITB): up 6.8% year-to-date; up 8.7% in the last month

Max Chen contributed to this article.

Manuel Maria Ruiz for Reuters reports that the budget deficit keeps growing, while the job market is still in shambles. The important part is that the country has an economic stimulus in place that should be just what the ailing banks need in order to recover. The total is $137.6 billion, which should be enough to keep the structure of the banking system strong, report Paul Day and Jesus Aguado for Reuters.

• iShares MSCI Spain Index (EWP): up 2.1% year-to-date; up 22.3% over three months

For more stories on Europe, visit our Europe category.

Spanish Economy Minister Elena Salgado stated that unemployment was higher in Spain than in other European countries as a result of structural problems and a stagnate housing market, which has put out 800,000 construction workers, write Manuel Maria Ruiz and Inmaculada Sanz for the Guardian.

Spain’s unemployment rate stands at 17.4% and is estimated to climb up to 21.5%, or more than 5 million, by the end of 2010. The economy is projected to shrink 3.8% in 2008 and 1.2% in 2010, and the budget deficit will grow to 9.2% of GDP this year and 11.5% the next.

A Plan E (Spanish Plan for Economic Stimulus and Employment) is Spain’s response to their current recession, according to Reuters. The stimulus, worth 5% of GDP, has reduced joblessness but economists believe it has not done much to effect domestic demand.

Ratings agency Moody’s listed Spain as a “vulnerable” nation with a AAA sovereign debt rating and Standard & Poor’s already downgraded Spain to AA+.

Most economists predict the Spanish economy will stay in the doldrums for a while since its economic model has been exhausted, according to AFP. Previously, the economy was fueled by domestic demand and a property boom, but now household spending has fallen 4.1% after a 2.3% drop in the last three months of 2008. Investment in construction also plummeted 12.4% in the first quarter.

On the upside, Spain’s ETF has crossed above its 200-day moving average on the strength of Banco Santander, which is up 21.8% year-to-date and is 17.3% of the fund. Telefonica, which is 24.9% of the fund, reported this month that its first quarter net profit rose 9.8%, thanks to a growing Latin American business that has helped offset sluggishness in Europe.

• iShares MSCI Spain Index (EWP): up 2.9% year-to-date

Max Chen contributed to this article.