'Brazil's Economy is no Bubble' says Brasilinvest's Mario Garnero

Aug 02, 2011, 14:58 ET from Forum das Americas

WASHINGTON, Aug. 2, 2011 /PRNewswire/ -- Mario Garnero, Chairman of Brasilinvest, Brazil's pioneer merchant bank, stated this weekend in Washington that BRIC countries (Brazil, Russia, India and China) will be "the powerhouse of world economy for years to come". He added that Brazil's economy, whose dynamic growth has caught global attention, is "not experiencing a credit bubble."

He addressed an audience of business and political leaders during the 2011 World Congress of the Society for International Development. Garnero's talk followed lectures by Enrique Iglesias, former President of the Inter-American Development Bank, and Robert Zoelick, former United States Trade Representative and current President of the World Bank.

Founded in 1957, the Society for International Development (SID) is a global forum on headquartered in Rome, Italy and it has over 3,000 members in 125 countries worldwide.

"Brazil's growth is based on sound macroeconomic management on the part of Brazilian financial authorities and the competitive advantages Brazil has been able to summon in technology-intensive areas, agriculture and energy. It is important that markets realize that Brazil is undergoing a robust credit expansion, not a credit bubble," Garnero indicates.

The Chairman of Brasilinvest explains that Brazilian households owe less that 50% of their yearly incomes, whereas in most OECD countries household debts amount to nearly 120% of a family's annual revenues. Besides, most of Brazil's austerity reshaping of the financial sector took place before the Great Recession that hit global markets as of September 2008.

In order to enhance Brazil's capacity to compete, Garnero shows that President Dilma Rousseff is convinced of the need for labour, social security and fiscal updates in Brazil. "She is working with society towards these much-demanded reforms." Garnero points out that Brazil is now mostly a middle-class country. Social Ascension has been commonplace and unemployment kept at bay by the vigorous expansion of the domestic market.

Besides his activities as a global entrepreneur, Garnero also chairs Forum das Americas, which he founded in 1965 as an independent think-tank. He announced a new partnership with SID on many different fronts, including a major conference on the so-called "Green Economy" to be held at the Harvard Club in New York in 26 September 2011 in cooperation with international NGOs and the Chairman of the Global Bioenergy Partnership Corrado Clini who also heads the Sustainable Development Department of Italy's Environment Ministry.

Anamelia Meirelles
T. 55 11 3094 7984

SOURCE Forum das Americas