On Bloomberg, ‘Brazil’s economy is even better than it looks’ – 06/15/2023 – Nelson de Sá

Lula was giving an interview to some radio stations in Goiás when he said that the Brazilian GDP will grow 2% this year, “perhaps even more”. The Reuters agency was listening and dispatched to newspapers even in India, “Lula says GDP will grow 2% or more”. It was “a day after S&P revised its outlook for the country”.

The coverage also turned the tide abroad and now one reads statements such as “Brazil’s economy is even better than it seems”, analysis by one of Bloomberg’s editors for Latin America, JP Spinetto, based in Mexico City. Just below, “Building trade, falling inflation and a more constructive political environment are all favorable conditions for growth”.

The text appeared earlier in the Bloomberg terminal, was seen by robin brooks“the bald”, chief economist of the world association of banks and funds, who shared the screen (below) and commented:

“Nice article by Spinetto on how the markets are —repeatedly—very negative towards Brazil. There are multiple forces working in Brazil’s favor right now.”

Reproduced by the Washington Post and others, the text begins with a provocation: “It is June, traditionally the month of brides and grooms — and of economists realizing that they are once again too pessimistic in relation to Brazil.”

He states that “Brazil may be at the beginning of a virtuous cycle”, he lists the reasons he sees for that, concluding: “And inflation expectations have improved a lot. Therefore, the Central Bank should cut the Selic. It is today at 13, 75%, making Brazil the country with the highest real interest rate in the world, almost 10%.”

Finally, The Economist recalls Christ the Redeemer taking flight, repenting in advance and writing:

“Of course I could be wrong. Predictions about the Brazilian economy are dangerous, both for journalists and for economists surveyed by the Central Bank in January. Still, it seems to be a good moment for Brazil.”

RUSSIA VS. CHINA

The news of Emmanuel Macron’s request to go to the Brics summit appeared in the Paris daily L’Opinion, it was not confirmed by the government or by competitors, but it has already divided Russia and China. In Rossiyskaya Gazeta, Russian foreign ministry spokeswoman Maria Zakharova questioned whether it is “some kind of Trojan horse”.

The Chinese Global Times, in an editorial that noted the negative Russian reaction, welcomed the “bold and innovative idea”. He said that “as long as they come with equality and goodwill, the Brics countries welcome not only France, but also the United States”.

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