Brazil: Retail revving up

Overview

Although the export picture shows few signs of improvement, Brazil’s large domestic economy, deep financial markets, stable banking system and wealth of natural resources put the country in the enviable position of being able to rely on its burgeoning internal market for growth, in contrast to most of the rest of the world. We expect Brazil’s retail sector, which has shown unexpected strength so far this year (aided by a 12 per cent minimum wage rise), to be an even better performer in...