Investment posts strong in Brazil

Sources:
INFOBAE.com: "Brasil 'aspira' mas capitales que el resto del mundo"
El Observador: "Brasil registro en junio superavit en su cuenta corriente 696 millones de dolares"

Banco Central of Brazil today reported that in June it received the equivalent of 10.318 million US dollars in foreign direct investment. This figure exceeds the total foreign investment in the nation over the course of the first half of 2006. Reports emphasize that this disparity reflects the volatility of markets in a globalized economy.

By way of further comparison, foreign direct investment in Brazil during the first half of 2007 increased by more than 180% above investment over the same time period last year. Additionally, it appears that Brazil will sustain this momentum, as investment dollars continue to pour in during the month of July.

Brazil is the largest economy in Latin America. Investment dollars are being channeled toward building more plants in the nation to produce more goods. Wages remain comparatively low in Brazil compared to other Latin American economies.

FOR DISCUSSION:

Is the level of competitiveness that can be maintained by keeping wages low worth the loss in potential economic growth resulting from the related lack of consumer spending?