Consumption and domestic demand are helping to fuel an economy that recorded a 5.4 percent increase in real GDP growth last year. AS/COA examines Brazil’s boom in areas ranging from credit to construction and insurance.

A proposal to create a South American defense alliance arose last week during a Brazil-Venezuela summit. As tensions between Ecuador and Colombia continue, Brazilian officials recommend a defense board to mediate in regional disputes.

Brazil leads the hemisphere in IPOs, but the region as a whole lags far behind other emerging markets.

With Brazil's economy holding steady in the face of worldwide financial worries, the country could play a leadership role on matters ranging from trade to economic policy. Yet concerns about a possible global downturn remain. 

Bolivia struggles to maintain contractual commitments to Argentina and Brazil, leading to a recent leader’s meeting in Buenos Aires about the matter. In Venezuela, fallout continues following last year's nationalizations. 

Eliana Cardoso, a professor at Fundação Getúlio Vargas and former World Bank economist, explores the balance between Brazil's sustained economic growth and China's hunger for commodities. She says that worldwide economic turmoil may affect trade quotas and put Brazil's economic prospects at risk.

At a weekend Buenos Aires summit, leaders talked about energy needs. As Bolivia falls short in meeting natural gas export demands, Argentina and Brazil may look to nuclear power as a solution.