Market Facts -- Tubotech

The Brazilian economy is in good shape after its positive development in 2006 and 2007. Stable macroeconomic data, an above economic growth caused by a booming domestic consumption and high investment activities provide a strong interest among investors for the Brazilian market.

For 2008 a slowdown in economic growth is expected due to the current financial crisis and a possible sustained recession in the USA. Although forecasts see the Brazilian economy at a robust annual growth of around 4 % in the next years. One reason therefore are planned investments in the industry, infrastructure, construction and agriculture sector with up to 600 billion euros until 2011. Especially the energy and transportation infrastructure need to be modernized and will benefit from private and public investments.

Accordingly the Brazilian market offers good opportunities for international business. Brazil as the largest economy in Latin America remains a popular investment location, mainly because of abundant raw materials and sales opportunities on the growing Brazilian and Mercosur markets, and in associated states.