Foreign investment flows aid the Brazilian market

Strong growth in telecoms, a successful privatisation phase and a financially responsible government have improved investor sentiment on Brazil. Recently the Brazil government lowered interest rates to 17.5% citing positive domestic inflation data and GDP growth for the first quarter at 3.1%. David Manuel, Head of Latin American Equities at Invesco, says the telecoms sector has recently grown to be the strongest in Brazil. He says: "It was always a strong sector but the privatisation process of 1998 has put it at the forefront of Brazil's economy." Manuel, who is overweight telecoms,...