Industrial Production Booms in Brazil

Fired by its huge domestic market, Brazil'sfor construction materials in Brazil. Production of
industrial sector has just achieved its biggest driveconstruction materials went up almost 200%
since 2003. This together with 2% GDP growth in(196.9%) in the 12 months between February
Q4 last year and the current big interest in Brazil2009 and February 2010. With one million homes
equities and Brazil real estate bring Brazil to thedue to be built in the low-cost property sector in
forefront of the world stage. Not for nothing isBrazil by the end of this year, production of
Brazil expected to achieve one of the highestbuilding materials will need to continue to rise to
GDP growth figures in the world this year.keep up with demand.
According to statistics released this week by theSectors related to construction materials in Brazil
Brazilian Statistical Institute (IBGE), monthlyalso experienced important increases. The
industrial production in Brazil was up 1.5% inmetallurgy sector - Brazil is a major producer of
February. The highest increases came in thesteel - raised production by 35.9%. The mining and
editing and printing sector, which almost doubledquarrying industries, which include the extraction
its production with a 97% hike; the pharmaceuticalof materials such as sand and gravel for
industry - currently in the spotlight for investmentconstruction, increased their output by over 20%.
in Brazil - where production grew by 15.9%; andLike many emerging markets such as China and
office and computer equipment with a rise ofIndia, Brazil has a fast-growing middle class. This
15%.middle class enjoys increased purchasing power
Year-on-year figures are even more impressive.and is hungry for consumer goods. In Brazil, this
In February, industrial production rose by 18.4%.desire to own material goods is reflected in the
Compared with February 2009, 24 out of the 27rise of the production of consumer items since
subsectors of industrial production improved theirFebruary last year. Car manufacturing grew by
output. Within these subsectors, IBGE examines20% - Brazil is one of the few countries in the
production figures for 755 products. 72% ofworld to experience a booming automobile
these products increased their output sinceindustry - and the production of household
February 2009, the biggest drive in the industrialappliances went up by nearly 25% for white
sector in Brazil since 2003.goods and by over 44% for televisions and
Two areas within the industrial sector appear asDVDs.
highlights: capital goods and consumer goods.Brazil's latest industrial production figures further
These two areas have seen massive hikes inconfirm the potential behind investing in Brazil. As
production over the last year in Brazil, particularlywell as being on the brink of an unprecedented
construction materials and household appliances.boom in construction and real estate, Brazil has
Brazil is currently undergoing an unparallelednumerous advantages. These include an economy
construction boom, driven by major investmentthat stood firm during the global recession, a
for the World Cup and Olympics, and a boomingbooming domestic market and a vast supply of
real estate sector - Brazil will build at least 13.7natural resources. Put all this together and Brazil
million properties by 2016.undoubtedly offers some of the best investment
It therefore follows that there is huge demandopportunities available at the moment.