Infrastructure spending still lags in Latin America

Latin Stock Investing | Weekly Update | December 17, 2010
Brazil’s economic stimulus for 2011
Dear Subscriber,
With an eye on hosting upcoming global sporting events such as the 2014 FIFA World Cup and 2016 Olympic Games in Rio, the Brazilian government announced several measures to encourage infrastructure investments. The measures include funding to purchase corporate bonds, massive tax cuts to investors in bonds used to raise funds for infrastructure projects and a partial rollback of taxes on capital inflow from overseas. Brazil’s investment in its infrastructure has lagged that of emerging market leaders. In terms of investment-to-GDP ratio, Brazil averaged 17% over the past five years far less than China (44%), India (38%) and Russia (24%).