Aug. 13 (Bloomberg) -- Wal-Mart Stores Inc., the third- biggest retailer in Brazil, will invest as much as 1.8 billion reais ($1.1 billion) in the country in 2009, a 50 percent increase from the 1.2 billion reais planned this year.

The Brazilian investment will be Wal-Mart's biggest since entering the country in 1995. Hector Nunez, chief of Wal-Mart's Brazilian operations announced the plans today in a meeting with Brazil's president, Luiz Inacio Lula da Silva, the retailer said in an e-mailed statement.

Even as economic growth slows in Brazil, gross domestic product may expand at more than double the pace of the U.S. this year and next, according to forecasts compiled by Bloomberg. U.S. GDP may increase 1.5 percent in both 2008 and 2009 compared with respective gains in Brazil of 4.7 percent and 4 percent, the forecasts show.

Wal-Mart, the world's largest retailer, may open as many as 90 new stores in Brazil in 2009, an increase of 28 percent from the 318 stores now open. The expansion may generate 9,000 new jobs, it said.

Wal-Mart's planned expansion in the biggest Latin American economy comes one week after the retailer said sales will probably slow this month in the U.S. The Bentonville, Arkansas- based company reports earnings tomorrow.

To contact the reporter on this story: Fabiola Moura in New York at fdemoura@bloomberg.net

Last Updated: August 13, 2008 17:41 EDT