Brazilian Economy

-When a Latin American economy has managed to grow during a period at a reasonable rate, normal was that such growth does not contribute too much to solve the problem of social inequality. In this case of the Brazil of Lula, the growth is accompanied by an improvement in the socio-economic situation of the population. This is not to say that the socioeconomic situation of the Brazilian people is good, but it has experienced a noticeable improvement showing fundamentals to sustain and deepen in the coming years. Most neglected sectors of Brazil you are returning the favor to Lula, this improvement in its economic situation through increased that are generating in domestic consumption, which has been of great value to speed up the output of the economy of its crisis and to boost growth in the coming years. Despite the numerous achievements of the Brazilian economy, not everything is happiness. Fears of a reversal in the context of abort initiated development process, are latent.

Several analysts point to the prices of commodities as one of the key factors in the good time of Brazil, and for this reason are afraid that a reversal at the same quotes may cause trouble to the great Latin American economy. Together with this fear is of a possible reversal of the flow of capital in the event of a relapse of the global economy (already is bet that possibly the U.S. observed a recovery shaped W by effect of the fiscal adjustments that are expected), which could damage the price of Brazilian assets and limit investment financing. From my point of view, the economy of Brazil has evolved and reduced their vulnerabilities, so it is gradually reducing its dependence on factors determined as commodity prices. Probably, if you receive a negative external shock, the fortress that is gaining domestic demand will help to absorb it.