In North America, the rich are getting richer faster. In South America, Brazil, the poor are getting richer faster. In terms of income, Brazilian workers make up the lowest 10% of the labor force, and had higher salary increases than the remaining 90% of the labor force. Wages for Brazil’s poorest workers grew an impressive 29.2% between 2009 and 2011, and during the same period, the average income of the general labor grew 8.3%. That is a significant difference than U.S. raises. This is showing that even the poorest contribute to the growth of the country. The average monthly income of workers in Brazil show a gain of 4.6%. While the poor are getting richer in Brazil and the poor are getting poorer in the U.S, there is still no comparing poverty or middle class incomes in the two countries. Over the next several years, Brazil has a ways to go before there is more uniformity in the social class when comparing social services in the U.S. But if the U.S. stays the way it is with low wages and high education costs, we should be on par with Brazil in a couple of generations.
Excel’s Latin America Fund invests 60% of its country allocation in Brazil which, as we see in this article, has a significant growth potential. 21.1% of the portfolio is allocated to financial services. With the wage increases, people will be buying more, using the banks for savings, and purchasing homes. By staying or investing in this fund, you benefit by gaining investment exposure to one of the fastest growing regions in the world. With Brazils population being 199 million with the average age being 29.6, the work force is raising and won’t diminish any time soon. And even with the poorest contributing to the growth of the country, the economic development will be moving rapidly.
Written by Melissa W.