The global spotlight now shines on Brazil, host of the next World Cup in 2014 and the 2016 Olympics in Rio de Janeiro. That spotlight shines even more closely as Brazil is also in flux; a new president will soon assume leadership as the popular President Luiz In�cio Lula da Silva steps down.

Brazil's recent economic growth is expected to top 7% percent this year, thanks to financial stability, strong exports, and a soaring domestic consumption that coincided with da Silva's eight-year presidency. Additionally, the country's emerging lower-middle class has swelled by more than 30 million people since da Silva took office.

Unsurprisingly, consumers in Brazil are some of the most optimistic in the world about their country's economy (54%), second only to India (77%), according to the Cotton Incorporated and Cotton Council International 2010 Global Lifestyle Monitor Survey. Fifty-eight percent of men and 51% of women describe their outlook for Brazil's economy as very or somewhat optimistic, and those ages 35-to-44 are most optimistic (60%).

Right before the election, Brazilian hotelier and restaurateur Rog�rio Fasano told The Observer, "There is a greater excitement, an optimism. I feel that people are seeing Brazil in a different way � not just in terms of tourism, but in terms of business."

However, as Women's Wear Daily reported in July, some economists are worried growth could slow over the next 18 months. The report cites still pervasive income inequality, a fashion market centered almost entirely in S�o Paulo, continuing high duties on fashion imports and poor infrastructure, although da Silva touted Brazilian President-elect Dilma Rousseff as the best candidate to push through infrastructure projects in preparation for the upcoming World Cup and Olympics.

The economists' concerns are borne out by the fact that even though half of all Brazilian respondents say they have the same amount of money to spend on apparel compared to last year, and 19% even report having more, 30% say they have less. Additionally, 35% say they have purchased less clothing compared to last year.

Those purchasing less are creatively frugal, with Global Monitor data revealing that consumers are only purchasing necessities, buying better quality items, and doing more comparison shopping. Many are making tradeoffs; among Brazilian consumers who say their outlook on their personal financial situation has kept them from purchasing certain items or services, 65% have given-up purchasing electronics and new or used vehicles, followed by travel or vacations (60%), furniture (59%), home appliances and new homes (56%), eating out (53%), and entertainment (50%).

Brazil's exports now include cars, aircraft, bio-fuels, textiles, and shoes. But industrial output unexpectedly dipped in August and the trade surplus slid in September, as the country's rapidly strengthening currency made its goods more expensive abroad.

Imports rose to $17.7 billion last month, from $16.7 billion in August, as Brazilian consumers armed with a stronger currency found goods from abroad a better bargain.

Figures from 2008, the most recent data available, show a scant 0.6% of Brazil's population of 945,000 people make more than $53,000, according to the country's Institute of Geography and Statistics (IBGE). Those earning more than $27,000 account for 2.2%, and are considered upper-middle class by the IBGE.

WWD cites political scientist David Fleischer, University of Brasilia, as saying this relatively low income is good for the apparel industry.

"Some 10-to-15% of consumers can afford lower-ticket luxury items, like the occasional purchase of foreign-brand fashion, but can't afford high-ticket luxury goods, like imported sports cars," Fleischer notes.

Currently, the Global Monitor finds 49% of Brazilian consumers shop for apparel primarily at chain stores, followed by independent shops (22%), specialty (15%) and sporting goods stores (3%). Further, Brazilian men are significantly more likely than women to shop at specialty shops for apparel (23% versus 9%).

The Global Monitor also found that consumers age 15-to-34 are significantly more likely than older Brazilian consumers to shop for most of their apparel at specialty stores. When asked what they like about where they shop most for apparel, most (39%) said the "selection or variety of items." Thirty-four percent cited the good or low prices (34%), while 26% cited the store's styles or designs, and 24% preferred the high-quality clothes.

The Global Monitor survey finds Brazilian women are significantly more likely than their male counterparts to say they like the selection or variety of items (43% versus 35%), the good or low prices (40% versus 28%), and the sales or bargains (27% versus 16%) in the store where they shop most for clothes.

Having to shop within a strict budget is necessary for the more than 12 million people who rely on the government's programs, which were greatly expanded under da Silva. This year's presidential campaign included promises to continue those programs, which also pump billions of dollars into the infrastructure and social programs. Experts predict additional governmental spending will weaken the currency and thus help exports, but some are wary of related domestic inflation.

These caveats aside, Neil Shearing of Capital Economics recently wrote to his clients: "Brazil is still on track to outperform most of the region and, indeed, most of the rest of the world."