These are crucial times for Brazil. I already posted that Brazil became the top emerging country and reported on the real estate growth potentials.
Until now Brazil is handling the impact of the subprime crisis with confidence and prudence. The Brazilian stocks remain healthy with a good growth potential throuygh 2008, and the consensus among economists in Brazil is that the country is in great shape to handle the turbulence ahead. Even the economists keeps writing on the decoupling scenario.
Brazil's international reserves have reached 188 billion US$, with a debt totalling 4 billion US$. Add to that the potentiual of Brazil's economy with the recent discovery of large oil fields, discovering Brazil's guarantee for auto-sufficiency in the need for energy in the medium term. Crucial, if you know that by 2030 the BRIC countries will consume more energy than the developing countries. 2030, that's in 20 years from here, I'll be 55 then. Imagine what it will be like to work and live in Belgium by then? The recent increase in jobs and the minimum wage is also expending credit, which still has a huge potential of growth compared to the US, Europe and even South Africa.
Most economists still predict that the Brazilian will grow nearly 5% in 2008 and 4,5% in 2008. The investment risk will be further reduced this year, which should attract even more amounts of foreign resources. Personally I follow the study of FGV which expects a growth of 4,7% this year, which will still be more than 3 times the growth of Belgium in 2008. And remember the impact of the devaluation of the US dollar on trade and this growth of 4,7% !
I truly believe that a new world economic balance is being formed in which Brazil is going to take a leading role.
John,
I see a lot of good things you say about Brazil ... but then I have the question why you still (or again actually) live in Belgium (for now ...).
Peter
Posted 17 years ago