The New York Times has an interesting article looking at the favorable business climate in Rio.
An August 2009 study, “Decision: Rio Investments 2010-2012,” published by the Rio de Janeiro State Federation of Industries, predicted that public and private investment would pump $60.3 billion into the state over the next three years, not counting the additional $14.2 billion budgeted for the 2016 Olympic Games.
“I would dare to say that, probably, we have the biggest concentration of billion dollars in investment per square kilometer in the world,” said Cristiano Prado, the author of the industry federation’s study. “And more will come together with the Olympic Games in the next years.”
Not since 1808, when the Portuguese monarchy sailed into Guanabara Bay, fleeing Lisbon ahead of Napoleon’s army, has Rio seen such a spectacular influx of wealth.
There are now 13 billionaires in Brazil, and the real is up 30% against the dollar this year. More good news is that the power is back on after a massive blackout last night in Rio. Some of my favorite Brazil-based stocks are Ambev (ABV), Vivo Participacoes (VIV) and Companhia Brasileira de Distribuicao (CBD).