"Over the past 10 years, Brazil has been through deep transformations.

Their origins can be traced to the country's modernization in the 1990s, as a result of a successful privatisation program, of the stabilisation of the economy and the strengthening of the banking system.

Regarding the economy, the administration by Luiz Inacio Lula da Silva (who used to oppose his predecessor, Fernando Henrique Cardoso) kept the main economic policies in place: fiscal austerity, inflation targets and a fluctuating exchange rate.

As a result, the risks of investing in Brazil decreased significantly, economic growth rates went up, inflation rates retreated to levels similar to other countries around the world, and Foreign Direct Investment flows are only second to those of China.

The country's international reserves now exceed $350bn, which serve as a cushion to protect the country's economy against economic crisis abroad, such as in 2008 and now.

Foreign trade has multiplied by a factor of four, reaching half a trillion dollar in 2011, with China becoming Brazil's main economic partner, ahead of the United States.

The internationalisation of the Brazilian economy has accelerated, and the country's multinationals (banks and companies involved in construction, meat production, airplanes, steel, transport and textiles) have gained prominence overseas.

Nowadays, Brazil is the 7th largest economy in the world in terms of economic output, and is expected to surpass the United Kingdom in 2011 to take the 6th place."

Read more at BBC News, click here.

 

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