More evidence from Brazil that the global recession is over–in that economy.
Figures released on September 17, 2009, show that the Brazilian economy created a net 242,126 formal jobs in August. Net formal job creation for the year stands at 680,034.
Add that to data from last week showing that Brazil’s GDP had climbed by 1.9% in the second quarter and the case arguing that Brazil has entered a sustainable rcovery looks very solid. (For more on that data and a buy to take advantage of the recovery, see my September 11, 2009 post https://jubakpicks.com/2009/09/11/buy-market-vectors-brazil-small-cap-etf-brf/ ).
Brazil’s finance minister recently projected that the economy will grow by 4% in 2010.
What’s especially encouraging to me is that job growth stimulates consumers to spend and makes it more likely that Brazil’s economy recovery will be built on the solid foundation of domestic demand rather than on more easily reversed trends in the global commodities market.
The number of new jobs created measured by  these official statistics seriously undercounts the real strength of the total Brazilian economy. The majority of Brazilian workers have jobs in the informal economy without a formal work contract. If the formal job market is growing, given the reluctance of many employers to add formal workers since it limits their flexibility and costs more, you can be almost certain the informal job market is growing even faster.
“Brazil will always be the country of the future”.
I do agree that their growth perspectives are very good, because they have lot’s of resources, including human resources. However, India is just better suited for a long-term run.
GDP growth rate comparison, as you can see its not even close. I like both countries, but lets not get out of control with the claims 🙂
BRZ IND
2008 4.8 9
2007 5.4 9.2
2006 3.7 8.4
2005 2.3 6.2
2004 4.9 8.3
India’s IT sector is a very small pocket in a vast country and roughly 1.1 billion people. That’s why I would not bet on India.
I like India, they are making huge changes and I see them as a bigger emerging power than Brazil in the next 5 years. India has a great IT sector. Their infrastructure is still terrible and they were dragged down by Fabian socialist policies, and are starting to move toward more free market ideals.
I have always believed that Brazil is the next new super power after China. Forget India or BRIC. The world has over-rated India and too many people including many supposedly well educated think India is like China. China has rose, so will India. In fact the two countries couldn’t be more different. India is far lagging behind China and the gap is getting wider each day. (The only thing that India is catching up with China is population and China is said couldn’t wait to hand over the title of world most populated nation to India.)
With China already became a global super power both economically and politically, I look around the whole world, I found no other nation than Brazil (not India) is in the best position. With it vast natural resources and relatively small and better educated population, Brazil has far better chance than India to be come world’s next super power. Don’t forget Brazil is already a commodity and agriculture super power. Compare to that, India’s ever fasting growing population will OFFSET whatever growth that country may has. By the way, these days too many people think India as some kind of high tech country, In fact, about 40% of its population are not literate!
I even think S. Africa, Australia, Canada, even Saudi has better chance than India to become a new global super power. Think about, these countries already have some kind of global influence in certain aspects, what global influence India has?
The 2016 Olympic should be in Brazil. It’s about time to bring the Olympic the South Americas.
Disclosure: I am NOT from Brazil or S. Americas. The only connection that I have with Brazil is the BRF that I just bought today at Juback’s recommendation.