Search
 

Brazil Slowdown Likely Just Pause

But the pressure on the Brazilian real poses a challenge for treasurers.

By John Hintze | Updated on August 17, 2012
Brazil’s economic growth party has paused, prompting global companies to consider tactical measures to hedge risks, but the long-term outlook for Latin America’s economic powerhouse remains strong.

Srinivas Thiruvadanthai, director of research at the Jerome Levy Forecasting Center, says he expects Brazilian interest rates to continue to fall—ultimately a boon for local businesses—and the real to remain under pressure, even after plummeting 23% against the dollar since June 2011.

“The economy will be under duress this year, but afterward will probably improve,” says Thiruvadanthai, adding that of the major emerging markets, Brazil is probably best placed for a rebound because it’s less dependent on exports than China or Russia and doesn’t have India’s “intractable” inflation.

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Recommended Stories

Treasury & Risk

Join Treasury & Risk

Don’t miss crucial treasury and finance news along with in-depth analysis and insights you need to make informed treasury decisions. Join Treasury & Risk now!

  • Free unlimited access to Treasury & Risk including case studies with corporate innovators, informative newsletters, educational webcasts, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM publications including PropertyCasualty360.com and Law.com.

Already have an account? Sign In Now
Join Treasury & Risk

Copyright © 2024 ALM Global, LLC. All Rights Reserved.