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Shvoong Home>Social Sciences>Economics>2008 IS NOT THE END OF THE WORLD - BRAZIL IS STRONG TO FACE THE CRISIS Summary

2008 IS NOT THE END OF THE WORLD - BRAZIL IS STRONG TO FACE THE CRISIS

Article Summary   by:EliasdoNascimento     Original Author: Eduardo Buys edubuys www.varejototal.zip.net
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BRAZIL IS STRONG TO FACE THE CRISIS IN THE WORLD ECONOMY It was to be another year a crappy, 2007, those walking away, half soles, another ugly duckling produced by the Brazilian economy, such dismal statistics on repeat. But something happened, it seems that half here, a sliver of a sun began to shine. And never stopped. The "discovery" of ethanol, the redemption through bio fuel, with Brazil as a global player in high level, through new gas and oil, with exports rising even with the dollar downward, through the stratospheric profits of large companies with a reduction in unemployment and an expanding customer base, plus the inclusion of the poorest to the market, many were stocked forward. Only good news, all increasing the confidence of foreign investors, with record inflow of U.S. dollars, and much goodwill Agencies risk classification. Finally, Brazil became, after many years, one of the darlings of the market. And in 2007, the bad, spent a year being upset. But as a 180-degree turn can revert to 360, all care is low. It is here enters 2008. A year that started full of gilts, the certainty of success. And the stumbling block came quickly, in the first month. On January 21 happens to 2nd Black Monday, in full American holiday of Martin Luther King. Even with the New York Stock Exchange closed, the rest of the world collapsed. It was a real God help us. Only in Brazil, the Bovespa fell 6.6% day out. The package of Bush, he again, did not enjoy, despite the promise of the injection of U.S. $ 170 BI, and even a "Bolsa Familia" embedded. It seems that the giant will suffer if the U.S. and the crisis could turn into a recession as advertised. Technically, a recession is marked by the negative growth for 2 consecutive quarters. It is predicted that Goldman Sachs, a stunted growth of 0.8% for the United States. This fact would lead to a reduction of world GDP growth of almost 6% in 2007 to 3% this year. It seems the end of the world. But it is not. Since then, there have been some reaction, with the U.
S. monetary authorities acting with an iron hand. The chairman of the FED - Federal Reserve Bank Cental America, Ben Bernanke, has used the same recipe of his predecessor, Alan Greenspan cut interest vigorously. Anyway, sinking more or less, one world economy is already taking on water, due to the American crisis. If it is inevitable, one question is how to extricate themselves better in this adverse environment. What to do to turn lemons into lemonade? Brazil, for the first time in many years, is fairly well positioned to face a world crisis. Greatly reduced their dependence on the U.S. market, which today represents only 15.6% of the volume of their exports, compared with 24% at the start of the decade. In terms of reserves, Brazil is supported by more than U.S. $ 190 BI booking firm, not financial flows, which come and go in a snap. Inflation is closely watched by Henrique Meirelles, a real watchdog installed in full central bank, keeping the basic interest not conservative level of 11.25% pa. A worrying aspect is how far does this Brazilian shield, in this crucial moment in the global economy. As for the BRICs, Brazil has one side open, because its recent economic strength is almost the entire sidewalk on external factors. The country did not, as China and India, structural changes and internal adjustments, so important to competitiveness and economic development of both its car business as the economy as a whole. The MEP''s - Micro, Small and Medium Enterprises Brazilians have a business environment very adverse to the development of their activities. This is to show different
Published: March 19, 2010   
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