Rana Foroohar
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Jul 14, 2009 11:11 AM
Over the last few days, I’ve been talking with our Rio correspondent, Mac Margolis, about the future of Brazil, which has been one of the winners in the global financial crisis. As Mac reports for an upcoming Scope item in the international magazine, the country has weathered the downturn much better than most; not a single bank went under, its debt is low and is predicted to fall rather than rise significantly in coming years, and the Treasury is still sitting on $208 billion in hard currency reserves. While the Dow, the DAX, and the Nikkei have tanked, the Sao Paulo stock exchange is up 31 percent since January and most economists are expecting Brazilian GDP growth to grow strongly again by next year.
But the fact that Brazil is so flush is also a risk.
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