Brazil’s economy is emerging from a difficult few years—but when analysing its prospects, a positive, long-term view is warranted, based on the country’s important position in world trade. With a little help from its friends and its own internal enterprise, this major South American economy, the world’s ninth largest by nominal GDP, has every reason to expect a triumphant comeback.
In the midst of the political and economic turmoil that has plagued Brazil in recent times, there is one financial sector that appears to have particularly strong credentials for buoyant growth over the coming years.
It’s safe to say that the Brazilian government has had a trust problem in recent years, and that this disconnect from approved practices has detrimentally affected its once vigorous economy. The IMF, in its recent Fiscal Transparency Evaluation for Brazil, took a close look at the areas in which the South American titan is succeeding and failing to live up to fiscal-transparency expectations.
The stability of the global economy continues to oscillate between intermittent recovery and general unease, and the new US presidential administration stands at the crux of its ongoing uncertainty. Various international incidents have influenced the condition of the global economy—the ongoing Brexit saga
Brazil started the decade off as Latin America’s emerging-market darling but has been trapped in a dark economic and political tunnel since early 2014; is the country finally beginning to see the light at the end? One indicator, the Bovespa stock-market index, replies with a resounding yes.
Brazil’s demise has been remarkable. Nearly every major macroeconomic indicator is at historically undesirable levels at present, from unemployment to inflation, and from GDP (gross domestic product) growth to public debt.
2016 is the year that the Olympic Games come to Rio de Janeiro, Brazil. The world will descend on a country going through its worst economic crisis since at least the 1930s.
Brazil’s state-controlled, multinational oil and gas giant, Petrobras, has fallen dramatically both in prestige and finances in recent months, bringing down the reputations of many of the nation’s top politicians and lawmakers with it, including the leaders of both chambers of Congress.
A growing middle class and one of the highest numbers of families with financial worth of more than $100 million in the world make Brazil very appetizing for private-banking providers. According to the latest McKinsey Global Private Banking Survey (2013), Brazil, together with Mexico, accounts for 67 percent of private assets under management in Latin America.
Three former heads of the Brazilian central bank, Gustavo Franco, Arminio Fraga and Henrique Meirelles have been critical of the economic policies of The current President Dilma Rousseff. At a conference in Rio the three bankers, who ran the central bank for 13 consecutive years between them, pulled no punches in their criticism of the current administration.