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Just How Real Is the Magic?(Brazil economy)

Newsweek International

| April 30, 2007 | Sharma, Ruchir | COPYRIGHT 2007 Newsweek, Inc. All rights reserved. Any reuse, distribution or alteration without express written permission of Newsweek is prohibited. For permission: www.newsweek.com. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Byline: Ruchir Sharma

Brazilian president Luiz Inacio Lula Da Silva says this is his country's "momento mAgico. " Well, he has some reason for feeling so chuffed. Inflation has collapsed, foreign capital is gushing in and consumer confidence is running high.

The buzzword in Sao Paulo's business community is "stability," which is a huge achievement for a country where boom-bust cycles had become a way of life. Economic forecasters have never felt so certain in predicting Brazil's outlook. They all think the country is on course to regain its long-lost investment credit rating, because the ratio of debt to gross domestic product continues to decline, inflationary expectations remain well anchored and fiscal discipline is maintained.

All this is rather ...

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Source: HighBeam Research, Just How Real Is the Magic?(Brazil economy)

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