Brazil's building boom in continuing.

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%).

Obviously this higher investment will have an impact on the Brazilian economy. Stay tuned to see how Brazil's government finances this relative to its current revenue stream.

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