Kenneth Rapoza – Forbes, 07/23/2012
Brazil’s weak economy will be flexing its muscles heading into the second half and likely grow at 4 percent in annualized terms, Brazil’s Central Bank president Alexandre Tombini told reporters in a conference call on Monday.
“Domestic sectors of the economy are already playing a more important role for the second half, regardless of the global slowdown,” he said. Brazil is still a very much a closed economy, with exports accounting for just 12 percent of GDP. While a lackluster global economy has surely impacted the major commodity exporters like Vale and affected confidence, Tombini said that a series of macroeconomic measures taken over the year — from payroll tax breaks to other fiscal incentives, coupled with falling interest rates — are already having their desired affect in the local economy.
Tombini isn’t the only believer. Foreign companies are pumping money into Brazil.