Brazil, an emerging economy, continues strong growth despite the global credit crunch and downturn in US business activity. The Economist Intelligence Unit forecasts that a sharp economic deceleration in the US will only moderately curb Brazil’s GDP growth via weaker real export expansion. Overall, economic growth is expected to remain firm, sustained by private consumption and investment. Retail sales remain quite strong, with annual year over year growth of 11.8 percent, putting the retail market at a three-and-a-half year high. The volume of trade at motor vehicle retailers expanded in January 2008 by 20.8 percent, following a 13.5 percent gain the previous month. Sales at stores selling furniture and household appliances picked up by 16 percent, following an 11.8 percent December gain, while sales at supermarkets and hypermarkets picked up by 8.5 percent, the strongest showing since March of the previous year. Meanwhile trade at stores selling textiles, apparel, footwear and pharmaceuticals expanded at a stronger double-digit pace than the previous month.

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