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Brazil is better than most of the developed world, says the Financial Times

posted Apr 15, 2012, 5:24 AM by Fernando Mello   [ updated Jun 30, 2012, 9:23 PM ]
November 21, 2011
Brazil is better than rich countries, says the Financial Times

The British newspaper says the country has several structural problems, but has an economic environment more secure than most developed countries.

Does Brazil still have "deficiencies in education and health, corruption, and a ridiculously complicated tax system"? Yes, but for the Financial Times, when it comes to a stable economic environment to attract investment, the country is better than much of the developed world.

The newspaper today published a post on his blog "Beyond BRIC," commenting on the rise of Brazil's risk rating by Standard and Poor's. The text says that this and other recent highs are quite an achievement for a country that has shocked the world because of its hyperinflation.

"During the first year of the current government, the earnings were better than what was originally expected, with good room for a flexible monetary policy," says the FT.

For the paper, this scenario allowed Brazil to be more effective by adopting countercyclical policies that leave the economy holds in the case of a fall in global demand.

According to the FT, the market had already raised the risk rating of Brazil before the S&P posting. "For example, when Brazil sold a billion dollars in 30-year bonds earlier this month, could do so at an interest rate lower than 5%, while Italy was negotiating its 30-year bonds bearing interest at 7% ".