Brazil’s economy has been one marked by steady, but slow, recovery this year. Now that a recession is in the rearview mirror, the country has shifted its focus to keeping inflation in check while goading further growth, which could reap benefits for its exchange traded funds (ETFs).
Gerald Jeffries for The Wall Street Journal reports that the threat of inflation is low, now that the economy seems to be stable, and improving. Brazil’s economy is showing consistent signs of recovery but still idle use of capacity is helping maintain low inflation pressure, Brazil’s central bank said Thursday. The country’s reference Selic interest rate was left unchanged at a record low 8.75% annually for a third consecutive meeting.
According to the Brazilian Census Bureau, retail sales rose strongly in October, marking the sixth consecutive month of gains as consumer demand continues to lead a recovery in Latin America’s largest economy. [Why Brazil’s potential is not even fully realized.]
October retail sales rose 1.4% from September and jumped 8.4% from October 2008, reports Alastair Stewart for The Wall Street Journal. Retail sales, specifically supermarket sales, have been sustained by the population’s improved spending power fostered by economic stability and steady growth over the past six years. [Why the Brazilian economy is just igniting.]