Brazil’s economy is “robust and stable,” Deutsche bank says

18 October 2007

Frankfurt, Germany, 18 Oct – The Brazilian economy is expected to see growth of 5 percent this ear and in 2008, according to a statement issued in Frankfurt by Deutsche Bank, which also noted Brazil would benefit from Chinese investment.

The statement, which was the latest edition of a periodically distributed report on the performance of emerging markets, said that prospects for the Brazilian financial sector were, “extremely positive.”

The bank said that Brazil had, “learned its lesson,” following the 2002 crisis, and that the economy was now, “robust and stable.”

The Brazilian currency, the real, was one of the currencies to gain most ground over the last few years, Deutsche Bank said.

“If anyone were to ask themselves if that trend can be compared to the highs and lows of the past, the answer is a clear no,” the statement said.

Deutsche Bank forecasts that Brazil will profit from further Chinese investments over the next few years, mainly in the raw materials sector.

“Only a small part of the investment promised by China for Latin America have been carried out so far,” the bank noted. (macauhub)