Clear that in the short term, what happens with the global economy matters to Brazil by the sensitive dependence of its industry to foreign sales. The Brazilian domestic market, despite having 190 million inhabitants, is still growing given the slow and gradual improvement of the social situation of the country. Meanwhile, the Hacienda Minister Guido Mantega, has shown more than confident about the prospects for the economy for the next twelve months, anticipating him to Reuters that in that period the same could reach a growth of 4%. The improvement in the global context is observing and major positive news coming from the United States. For the American President, Barack Obama, has started the beginning of the end of the recession: the markets go up and the financial system is no longer on the brink of collapse.
We’re losing jobs at half the rate that was recorded when I came to Office six months ago. Investors perceive the same thing and want to be the first to take advantage of booming markets. And even though the Brazilian stock market is not the only one It is with a upward trend, is one of those who have done so with greater force and account with solid guarantees to continue doing so. For this reason a good percentage of the investment flows that were oriented towards the emerging again have chosen the promising Brazilian market and is so so far of the year entered the country US $6.3 billion. Brazil is the other side of Argentina which can not curb the flight of capital that already accumulated US $ 11.5 billion and could reach $20,000 towards the end of 2009 (and not implement immediate actions to reverse it, you may face a new crisis situation). This permanent capital inflows to Brazil, that surely will be maintained at least in the short term, assures to keep the exchange rate appreciated, providing tranquility to the foreign investor that won’t lose part of its investment through an exchange-rate depreciation.