Economy outlook

• A View from Brazil
  
• Economy - overview
• Brazilian Economy Outlook

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A View from Brazil: Alberto Ramos, Goldman Sachs:

Alberto Ramos, head of Latin America Economics Research, Global Investment Research Division, discusses Brazil's economic progress over the past decade and what its future may hold.

Economy - overview

The Brazilian economy is the world's sixth largest by nominal GDP and the seventh largest by purchasing power parity (as of 2011). Brazil is one of the world's fastest growing major economies. Economic reforms have given the country new international recognition. Brazil is a founding member of the United Nations, the G20, CPLP, Latin Union, the Organization of Ibero-American States, the Organization of American States, Mercosul and the Union of South American Nations, and is one of the BRIC countries. Brazil is also one of the 17 Megadiverse countries, home to diverse wildlife, natural environments, and extensive natural resources in a variety of protected habitats.

Characterized by large and well-developed agricultural, mining, manufacturing, and service sectors, Brazil's economy outweighs that of all other South American countries, and Brazil is expanding its presence in world markets. Since 2003, Brazil has steadily improved its macroeconomic stability, building up foreign reserves, and reducing its debt profile by shifting its debt burden toward real denominated and domestically held instruments. In 2008, Brazil became a net external creditor and two ratings agencies awarded investment grade status to its debt. After record growth in 2007 and 2008, the onset of the global financial crisis hit Brazil in September 2008. Brazil experienced two quarters of recession, as global demand for Brazil's commodity-based exports dwindled and external credit dried up. However, Brazil was one of the first emerging markets to begin a recovery. Consumer and investor confidence revived and GDP growth returned to positive in 2010, boosted by an export recovery. Brazil's strong growth and high interest rates make it an attractive destination for foreign investors. Large capital inflows over the past year have contributed to the rapid appreciation of its currency. President Dilma ROUSSEFF has pledged to retain the previous administration's commitment to inflation targeting by the Central Bank, a floating exchange rate, and fiscal restraint.

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Brazilian Economy Outlook