Brazil ‘unfazed’ by global crunch

Brazil's economy is expanding and remains unaffected by the credit crunch, claims Guido Mantega, Brazil’s Finance Minister…

Mr Mantega commented: “Economic growth in Brazil was something between 5.2 and 5.3% in 2007. That would be the fastest pace since the 5.7% rise in 2004. Growth this year should remain around 5%”.

Mr Mantega believes that this rise indicates that the country remained ‘unscathed by the global credit rout that has affected economies worldwide’, adding: “The subprime crisis hasn't arrived at the beaches of the Copacabana. As the crisis unfolds, Brazil stays unfazed. That shows that we are a solid economy.''

He continued: “Growth is being driven by buoyant consumer spending, which probably expanded 6% in 2007, and exports of commodities like iron-ore that are in high demand around the world.  

“The fact that Brazil became a net foreign creditor for the first time in January, underpins its new-found status of as a ‘safe place for investors”'.