Why Brazil is more than just a resources play

Brazil's potential

Thomas Smith, fund manager of the Neptune Latin America fund, explains how the domestic story is unlocking investment opportunities in Brazil.

While the Brazilian economy has benefited from the commodity boom of the last decade, investors often fail to appreciate the wealth of opportunities coming from a consumer who is earning more and, most importantly, spending more. Brazil does indeed have natural resources in abundance. Vale, the mining giant, produces nearly 25% of iron ore globally – more than Rio Tinto and BHP Billiton combined – and Brazil has 22% of global agricultural land. However, due to the relatively closed nature of the economy, exports made up only 11% of GDP in 2010. Argentina’s exports contributed more tha...