Good News from Brazil

I just came back from a week in Brazil and I must confess that it felt good to read positive news about the economy for a change. Three things caught my attention, especially since I will be moderating a panel next month in the Think Latin America event in Silicon Valley.

From pyramid to diamond

• Data on the growth of the middle class. The income class distribution in Brazil used to look like a pyramid, now it is diamond-shaped. The Brazilian middle class now represents 53% of the population or roughly 101 million consumers. The wealthier A and B classes represent 22% and the "poor" are now 25% of the country's population. 
• Air travel versus Bus travel. Brazilians used to travel by bus, because it was cheap and convenient. But with the growth of the middle class and the arrival of low cost airlines like Azul and Gol, Brazilians now prefer to take a plane for interstate travel. In a country of continental dimensions, this means increased productivity, but also a huge burden on the infrastructure. The Porto Alegre airport, for example, has seen a 90% increase in traffic from 2005 to 2010.
• Taxes. Brazilian authorities announced that tax revenues for 2011 were 19.7% above the same period in 2010, and that the February numbers were the highest ever for that month. This is the result of the increased economic activity in the country, although critics complain that tax revenue is growing faster than the economy, which grew 7.5% last year. 

If you add that the majority of the population believes that the economy will be better in 2011 than in 2010, you have the recipe for a perfect market to pursue.

A relevant factor for the localization community is the fact that according to an English Proficiency Index study by EF highlighted by the Lioness blog "Latin America has the lowest level of English proficiency of any region. Only Mexico and Argentina score above low proficiency."

So if you want to sell in Latin America, start localizing now!