Brazil surpasses other BRIC

Nov 23, 2012 by admin    No Comments    Posted under: Economy, Politics

Brazil stands out as the country in which the economic climate is more favorable among the emerging economies that make up the Group of BRIC (Brazil, Russia, India and China), according to the Latin America Economic Survey, conducted by the Getúlio Vargas Foundation (FGV) in partnership with the German Institute Info. The Economic Climate Indicator (ICE) of Brazil, in the quarter from August to October this year, advanced 6.1 percent, compared with 5.2 percent recorded in the immediately preceding quarter, while the result of Russia was 4.3 %, of India, 5.4 % and of China, 4.7 %, that registered a slowing of its economic growth.

As the questions are mostly concentrated on economic growth, the indicator ends up picking up this scenario. In Brazil, the projections were far worse than showed the reality” said Lia Valls, Coordinator of studies of the external sector of the Brazilian Institute of Economics from FGV.

As the economic results in Latin America were more favorable than what the market expected, the ICE in the region in the quarter registered more positive results than in the rest of the world, which is phasing a recession. Positive results are expected also in the next sixth month, mainly due to expectations of increased consumption in Latin America which is in contrary to the situation in most European countries and in the United States, where the insufficient demand is considered the biggest obstacle to economic development.

In Brazil, as well as in other countries of Latin America, the main problem raised by respondents is the lack of international competitiveness and skilled labor. “The concern with competitiveness is more recent, from 2008 and it is connected with the exchange rate. In past, the focus was on inflation”, said Lia Walls.

Source: www.estadao.com.br