Wal-Mart raises Brazil investment by a third to open 90 new stores
Wal-Mart Stores Inc plans to invest 1.6 billion Reais (US$ 860 million) in Brazil in 2009,
betting an economic recovery in Latin America's largest economy will stoke consumer demand.
"The worst is over and from here on we will have a rebound in Brazil's economy," said Hector Nunez, chief executive of the U.S. retailer in Brazil, back in June 09.
Wal-Mart's investment this year, a third more than last year and its largest since entering the country 14 years ago, will go partly towards opening 90 new stores as well as to the 348 it now operates, he said.
"We will have a good year. Our growth in the first five months of the year has been quite positive in real terms," Nunez said, without giving details. "For the second quarter we had a good performance, if not as good as the first." ($1=1.85 Reais)
(Reuters)
One of the largest of the new stores is set to be in Fortaleza, North East Brazil and this is further evidence of the concentration of investment in the region, as it’s bustling capital city is selected as a major expansion location.
Many US companies are looking to diversify and expand away from their home country and Brazil is continuing to be the economy of choice, little wonder considering that Goldman Sachs and Deutsch Bank have predicted that Brazil will grow from the 10th largest economy on the planet to secure a spot amongst the top 5 within the near next few years.
While many economies are reeling from the “Global financial crisis” and look set to feel the repercussions for several years Brazil is seizing the opportunity, capitalizing on its strength to be become a leading player in the global economy and politics.
The Liquid Team - 18 Sep 2009
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