analysts concerned after brazil rating downgrade
Last Updated : GMT 15:07:33
Arab Today, arab today
Arab Today, arab today

Analysts concerned after Brazil rating downgrade

Arab Today, arab today

Arab Today, arab today Analysts concerned after Brazil rating downgrade

Brasília - AFP

Brazil must convince markets that it can grow its economy while also slash spending and curtail inflation, analysts said after the country's credit rating sunk to near junk status. The Central Bank said Brazil would respond "robustly" to global economic challenges after Standard & Poor's lowered its credit rating to BBB-, the lowest level for investment grade debt. S&P however described Brazil's overall outlook as stable. The downgrade was "inconsistent" with economic conditions and "does not reflect Brazil's solid performance and fundamentals," the finance ministry said in a statement late Monday. - China's role in growth - Analysts warn that they see hard times ahead for the World Cup Olympic hosts, with one indicating that strong 2004-2010 growth had been on the coattails of strong demand from China"Having enjoyed years of 'easy growth' in 2004-10, driven by Chinese demand, absorption of surplus labor and credit growth, the government and congress have not pursued structural reforms to sustain growth," said Robert Wood, Brazil analyst with Economist Intelligence Unit. Without policy adjustments in 2015, "the outlook will deteriorate further," Wood said. Sao Paulo University's Manuel Enriquez Garcia said that the years of strong growth fueled hopes that Brazil could become a major economic force. Now this hope "has been lost due to poor management of public accounts and a falloff in growth," he said. Austin Rating's chief economist Alex Agostini added: "There is no confidence that Brazil will control public spending and manage to bring down inflation in an election year." - Slow growth forecast - Growth in Brazil has fallen off after peaking at 7.5 percent in 2010. In this World Cup year the government is forecasting growth of 2.5 percent, though markets are less optimistic. Brazil is also stuttering of late on trade, with a 2013 trade surplus of just $2.56 billion, its lowest in 13 years. The Central Bank said that, in response, it would combine macroeconomic austerity, exchange rate flexibility and use of liquid reserves to keep share price volatility in check. In announcing the downgrade, S&P cited the government's unclear policy signals as it faces a weaker fiscal situation and slower growth. The agency said the rating cut reflects "slippage" in the government's fiscal balance, and the prospects that slow growth over the coming years will leave the government less able to strengthen the balance. It said both cyclical and structural factors were behind the growth outlook, pointing to low investment, which was only 18 percent of GDP last year.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

analysts concerned after brazil rating downgrade analysts concerned after brazil rating downgrade

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

analysts concerned after brazil rating downgrade analysts concerned after brazil rating downgrade

 



Arab Today, arab today
Arab Today, arab today Jordanian woman reveals her project

GMT 00:46 2017 Saturday ,11 November

Jordanian woman reveals her project
Arab Today, arab today Air China suspends flights to North Korea

GMT 10:39 2017 Thursday ,23 November

Air China suspends flights to North Korea
Arab Today, arab today Sophian Yussef reveals suitable decoration

GMT 02:56 2017 Thursday ,23 November

Sophian Yussef reveals suitable decoration
Arab Today, arab today Syria opposition meets in Riyadh

GMT 06:23 2017 Thursday ,23 November

Syria opposition meets in Riyadh
Arab Today, arab today Online exhibit shows hidden depths of

GMT 11:45 2017 Thursday ,23 November

Online exhibit shows hidden depths of
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Australian academic's book pulled

GMT 15:20 2017 Monday ,13 November

Australian academic's book pulled
Arab Today, arab today Srebrenica women cry tears of joy

GMT 08:03 2017 Thursday ,23 November

Srebrenica women cry tears of joy
Arab Today, arab today Delhi half-marathon to go ahead

GMT 03:51 2017 Saturday ,18 November

Delhi half-marathon to go ahead
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today 'Robo-taxis' hold promise, and perils

GMT 08:07 2017 Thursday ,23 November

'Robo-taxis' hold promise, and perils
Arab Today, arab today Honda recalls 800,000 minivans

GMT 11:43 2017 Wednesday ,22 November

Honda recalls 800,000 minivans
Arab Today, arab today Abeer Sabry reveals reason of “The Flood” success

GMT 08:03 2017 Tuesday ,21 November

Abeer Sabry reveals reason of “The Flood” success
Arab Today, arab today paObama climate envoy slams Trump's rejection

GMT 16:04 2017 Friday ,17 November

paObama climate envoy slams Trump's rejection

GMT 07:56 2017 Monday ,20 November

Singer Jahda Wahba has unlimited ambitions

GMT 02:14 2017 Saturday ,18 November

May under Brexit pressure at EU reform summit

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation

GMT 11:38 2017 Wednesday ,15 November

Unloved vultures fight for their survival

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts

GMT 10:43 2017 Wednesday ,22 November

Cigar-shaped asteroid came

GMT 09:45 2017 Tuesday ,21 November

Visit Jamaica for more than just sun

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday