Brazil to emerge from economic crisis sooner than most

BY NELSON ALCANTARA | APR 16, 2009

The governor of the Central Bank of Brazil, Henrique de Campos Meirelles, has told the World Economic Forum that Brazil is expected to emerge from the current global sooner than most other countries.

Brazil is expected to emerge from the current global crisis before the average of the world economy,” said the governor of the Central Bank of Brazil, during a session on responses to global economic uncertainties at the World Economic Forum on Latin America in Rio de Janeiro. He said that the future was still uncertain, but recent indicators point to a recovery in several sectors, including the automotive industry and retailing.

According to Meirelles, Brazil will grow above the world average. Nevertheless, president Paulo Antonio Skaf of Federação das Industrias do Estado de São Paulo (Fiesp) said he expects Brazil’s GDP to contract by at least 1 percent in 2009.

Meanwhile, Banco Itaú Unibanco board chairman Paulo Moreira Salles argued that Brazilian financial institutions are strong and that the Brazilian banking system is well prepared to return to the market when things are back to normal in the next 12 to 18 months.