Where do you see Brazil in 10 years?

Mark Mobius answers this question in a blog post.

Can you comment on Brazil? Where do you see Brazil 10 years from now?

– James, United States

Brazil is a key producer and exporter of commodities. Strong commodity prices associated with a solid domestic demand for goods and services have been key drivers of its economic growth. Hence, it is likely to benefit from rising global demand, including demand from China, for energy, metals and other commodities.

Brazil is also a country with a large, growing consumer base. Brazil’s economy is diversified and largely domestically driven, with exports accounting for less than a quarter of GDP. This domestic strength is one of the reasons for the Brazilian economy’s relatively faster recovery compared to most other globally-exposed economies. Its big consumer market creates opportunities for a wide range of firms, including financial services providers, health care firms, cosmetics companies and beverage manufacturers. In addition, Brazil will be hosting the FIFA World Cup in 2014 and the Olympics in 2016, hence, it is expected to invest significantly in infrastructure that should help drive economic growth in the coming years as well as improve the basis for stronger sustainable growth in the long-term.

We expect Brazil to continue its development by increasingly investing in improving its infrastructure, as supported by its large oil exploration campaign and the other reasons cited above. Capital should continue to be attracted to the country on the back of these strong drivers and Brazil should remain in a sound financial position.

Published by Janar Wasito

Janar Wasito is the manager of Magis Capital in San Diego, CA. He is a graduate of Harvard and Stanford Law School, and a former Marine Officer.

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