In 2007-08 Brazil experienced strong growth and its debt was given investment grade status. It is no surprise that the 2008 global recession did not spare Brazil, it entered a recession due to a slow global demand for its commodities. Brazil came back strong and was one of the first markets to recover delivering a GDP growth rate of 7.5% in 2010. Rising inflation and the global economic slowdown in 2011 brought down Brazil's GDP growth rate to 2.7%, the first quarter of 2012 saw even lower growth. Brazil's inflation rate is currently 4.92% and interest rates reached a record low of 8% in July 2012. The country's high interest rates in a world of low interest rates make it attractive for investment. Brazil's 10yr government bond is yielding 12.55% interest. In 2011 Brazil became the world's seventh largest economy in terms of GDP making it an important player, the title was previously held by the United Kingdom. The unemployment rate was reported to be 5.8% in June 2012.
The Bovespa Brazil's Sao Paulo Stock Exchange Index has rallied 3900 points in the last 30 days. It closed at 56,553.12 on Friday one of the top performers for the day was OGX Petroleo e Gas Participacoes SA which is an oil and gas production company.
Although some investors have placed their faith in the Brazilian economy it has been slowing down a bit some of the fault can be pinned on a weaker demand for the country's goods. On Friday the President of the South American country Dilma Rousseff stated the government will look to stimulate the economy by investing more in infrastructure. Although the global economy is slowing she sees the economic growth in Brazil accelerating in the coming months. Economists believe the country's growth will remain below 2% for 2012.