Wal-Mart to Invest 1.2 billion Reais in Brazil This Year
Wal-Mart Stores Inc. (WMT), the world’s largest retailer, plans to invest 1.2 billion reais ($756 million) in Brazil this year, as foreign companies seek to benefit from the expansion of Latin America’s largest economy.
“We are in a continuous rate of growth, which led to the opening of 45 stores last year and will allow 80 new stores” this year, Marcos Samaha, president of the company’s unit in the South American country, told reporters today in Brasilia, after meeting with the country’s Trade Minister Fernando Pimentel. “We have absolute confidence in the success of this country.”
Brazil’s fastest economic expansion in more than two decades, fueled by surges in credit and employment, is prompting foreign companies, from supermarket chains to carmakers, to increase investments to take advantage of the growing consumer market. Japan’s Mitsubishi Motors Corp. (7211) said last week it will invest about 1 billion reais to increase production at its Brazil factory over five years.
Wal-Mart’s expansion plan includes hiring 7,000 people in Brazil in 2011, Samaha said.
Brazil’s economy grew 7.5 percent last year and may expand 4 percent in 2011, according to the quarterly inflation report published March 30 by Brazil’s central bank.
To contact the reporter on this story: Mario Bessa Lima in Brasilia Newsroom at mlima11@bloomberg.net
To contact the editor responsible for this story: Francisco Marcelino at mdeoliveira@bloomberg.net
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