Magis Global –

October 27, 2015

Brazil Global

Category: General – Joan – 3:26 pm

This mood reflects primarily a change in global perception towards the country, which has been rapid and welcome. But as the country recovers from a global economic crisis, Brazil was the first Latin American country to join the recovery, which was started in the second quarter of this year, "what other markets might learn from this remarkable recovery? Brazil has experienced ups and downs before its global reputation. During the presidential campaign of 2002, the debt soared and the currency was devalued as investors began to doubt that Luis Inacio Lula da Silva, one of the most likely candidates, he intended to meet the country's debt obligations. It was a relief when, after winning the elections, it became clear that the general consolidated general political orientation of the previous administration, which somehow facilitated and promoted growth not seen since the 60s. Consider it reminds us that the growth trajectory was interrupted by the escalating global credit crisis a year ago. The ripples of the economic crisis sparked several falls in the Brazilian Bovespa stock index, which rose from 73,000 in spring 2008 to less than 30,000 in the autumn of the same year. Also, in December the price of the currency was 2.55 reais per dollar, a few months earlier traded at 1.55 reais per dollar. The global inventory adjustment, the credit crunch and falling consumer confidence joined forces to produce annualized GDP growth falling from 13% in the fourth quarter. After the response of international economic policy makers that drove the global economy from the brink, fiscal and monetary policies adopted in Brazil allowed the country to regain its footing in the first half of this year.

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