Why investors trust in Brazil economy
Above, the evolution of Brazil stock index vs. other emerging stock markets. Below two indebtness ratios.
Is is worth investing in Brazil?. Standard & Poors upgraded Brazilian government debt to BBB-, the lowest of the investment grade ratings, giving a huge boost to the Brazilian stock market, one of the best in the World in 2,008, and to its long-term bonds market.
In 2,003 Brazil public debt accounted for almost 60% of their gross domestic product, and currently represents only a little more than 40%. The cost of interest debt accounts now for only 6% of Brazil gross domestic product. This improvement has benefited Brazil with an strong inflow of foreign direct investment, which can be seen with the rise of 40% of Brazilian Real against the US Dollar in just 3 years (see Brazilian Real chart against the dollar and the Euro).Brazil is the seventh country in the world in tearms of foreign reserves currencies (a clear indicator of financial health health).
In Fact, Brazil is one of the few countries in the world where they are finding large oil fields, in deep waters in the Atlantic Ocean.
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2 Responses to “Why investors trust in Brazil economy”
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July 20th, 2008 at 11:20 pm
Saludos desde Argentina Marc, que pasara ahora con la inflacion que esta de vuelta. Los alimentos estan subiendo mas de un 50% en algunas ciudades de Brasil y si el commodity boom “is over” lo que no creo. Tendremos un respiro o hay que seguir comprando en “dips” cias como PBR, RIO, SID.
Tenias razon sobre Sohu, Sina, uno tiene que siempre tenerlas.
Se recuperara China a principios de Agosto. Que opinas de CTRP??
Abrazo,
Pedro
July 27th, 2008 at 7:25 pm
Hola Pedro,
Yo no invertiria aun en ninguna empresa de materias primas como RIO o RTP. En petroleras quizá dentro de poco.
una abrazo,
marc,