As we’ve seen in the blog, Brazil’s economy is booming, and the Economist reported yesterday that it has emerged from the recession.
So for today’s interactive feature, the question is: What do you think is Brazil’s most promising industry?
The most obvious answer would be petroleum, given the amount of press and political hoopla, but there are plenty of other industries making a mark on the economy: agriculture, food retail, technology, and telecoms, for example.
What do you think?
This week, the Wall Street Journal revealed that the U.S. government plans to invest US$2 billion in Petrobras, Brazil’s state-run oil company. It is the largest company headquartered in the Southern Hemisphere and the largest company in Latin America in terms of revenue. Its assets, which include oil assets in Brazil and 18 other countries, amounts to $133.5 billion.
The investment, which is in fact a loan, is to help Petrobras explore the Tupi basin off the coast of Rio de Janeiro, which could potentially make Brazil one of the world’s biggest oil powers. The investment will go towards offshore drilling activities to take place over the next several years.
According to the article, a preliminary commitment of $2 billion is on the table, though that amount may increase. However, some experts are scratching their heads about the idea of a loan from the ailing U.S. Treasury to cash-rich Petrobras.
Also this week, the New York Times reported that the Brazilian government is seeking more control over Petrobras in an effort to prevent foreign influence and to ensure national control over the Tupi oil field. However, the reform plan, which is being promoted by President Lula, faces strong opposition in Congress.
China has been in the headlines with Brazil this week, as newspapers report a growing commercial, political and even cultural proximity between the two BRIC countries. Let’s take a look at the biggest stories. 
Despite the fact that GM declared bankruptcy and is now partially owned by the US government, it will invest US$1 billion to create two new models of cars in Brazil, which will help create 1,000 jobs.
The Brazilian government recently reduced taxes on automobiles, which lowered the price of GM cars and led to a large increase in sales. The Brazilian part of GM is not owned by the US government, nor will the Brazilian-produced cars use American parts. Also, funding for the new project will be split between the company and Brazil-based loans. Though car sales in the US are lagging, June was the best-selling month ever for cars in Brazil, and auto companies are expecting high sales for the rest of the year.
The company plans to create new small and mid-sized cars at the Gravatai plant in Rio Grande do Sul, and production will begin in 2012. Though the majority of the cars will be for domestic sales, they may also export them to Mercosur countries and possibly other developing countries.
The investment is the largest GM has ever made in Brazil, as the company seeks to expand in growing markets. In 2008, GM sold 580,000 cars in Brazil, and company executives expect to sell 600,000 in 2009.
At a press conference in Sao Paulo this week, Citibank CEO Vikram Pandit announced that the bank is putting its hopes on developing economies like Brazil to boost the company after billion dollar losses. After the credit crisis in the United States, Citibank hopes economies like Brazil’s will provide much needed growth. 
Brazil has the largest economy in Latin America, and has enjoyed a period of unprescedented growth despite the global financial crisis. In Brazil, Citibank plans to invest in consumer finance, as well as small and medium-sized businesses. The company is looking to the average Brazilian consumer, who is now spending more than in previous years, and to businesses looking to expand.
In addition, Citibank hopes to become a major lender in Brazil and has recently begun a campaign to improve their image in this role.
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