Brazil ‘well-placed’ to survive recession.
Brazilian property investors may be interested to learn that the country is well-positioned to ride the economic slowdown, an expert has claimed.
Andre Loes, chief ecomomist at HSBC Brazil, told the Washington Post the country has improved its economy from the 1990s when it had a weak balance of payments.
"In the late 1990s and early 2000s, we established an inflation-targeting regime. We approved a fiscal expenditure law. The state could only raise spending if it raised taxes," the newspaper quotes him as saying.
Brazilian law forces the banks to be among the best capitalised in the world, benefiting the economy.
This week, an expert predicted that Brazil, along with Russia, India and China (Brics), could be bigger than the G7 countries by 2035.
Jim O’Neill, writing for the Financial Times, said the Brics are likely to be the only source of domestic demand growth globally this year.
