“Domestic demand continues to be the main support of the economy,” said Tombini, “with family consumption registering 5.9% growth compared to the first quarter of 2010 (the thirtieth consecutive positive variation in this basis of comparison), a performance which has been spurred by the moderate expansion of credit to families, by the generation of employment and wages.”

However, private sector economists and the Central Bank project a minor slowdown in the second quarter due to tightening fiscal and monetary policies.

The Brazilian telecommunications industry is a particularly noteworthy sector of the country. The increasing number of people using of mobile phones, which has jumped 46.9% in the first quarter year-over-year, has fueled the industry, writes Juan Carlos Arancibia for Investor’s Business Daily.

For more information on Brazil, visit our Brazil category.

ETFs that invest in Brazilian stocks include:

  • iShares MSCI Brazil Index Fund (NYSEArca: EWZ)
  • Global X Brazil Mid Cap ETF (NYSEArca: BRAZ)
  • Market Vectors Brazil Small-Cap ETF (NYSEArca: BRF)

Max Chen contributed to this article.