Brazilian economy will not suffer from the international crisis
British economist is convinced that commercial partnerships with emerging countries will help Brazilian economy sail through difficult times
The speculations of analysts and constant International Financial Market oscillations point to even more depressing figures for the already existing American economy downturn. To British author Martin Wolf, one worlds top economists and Financial Times columnist, the crisis, however, will not have direct impacts on the Brazilian economy. The statement made by the European expert eases any possible concerns old and future investors might have about Brazil and the forecasts for our economy. According to Martin Wolf, besides the United States itself, countries like Canada and Mexico, which are closely linked to the American economy, will suffer the most. To him, our trade relations with China will help us face any possible problems.
Mr. Wolfs forecasts coincide with the virtuous cycle Brazilian economy is currently experiencing. Brazil is now a net foreign creditor, with the total amount of foreign cash reserves exceeding the entire foreign debt of Brazils government and individual companies combined. To Brazils Central Bank this adds new strength to the views of the British economist and promotes the unquestionable strengthening of the Brazilian position abroad. With Brazil reaching a net creditor status, our autonomy is furthered and our dependence on the United States and the American economy lessened, economist Marcelo Quintanilha commented.
In the United States and other industrialized countries this will be a longer and more serious crisis than the ones we have witnessed in the last 20 years. The American crisis will adversely impact the European economy. Yet, there are few chances of significant consequences to the Asian countries, warned the British economist, who, according to The Economist, is one of the best analysts of current global economy scenario. Brazilians can relax, said Martin Wolf, in a recent interview to Exame magazine. To Wolf, the commercial ties between Brazil and China should buffer crisis symptoms in Brazil.
Asked about the effects the crisis could have on the United States, the author of the much praised book Why Globalization Works? is prophetic and pessimistic about the future of the largest economy in the world. To me this moment can be described as an American crisis. It will be extremely debilitating to them. We are walking towards a world where the significance of the United States as a commercial power and source of global trade demand will be strongly reduced, he said.
