Brazil is well placed for triumph – but wait for a better time to jump in

Brazil has come a long way over the last few years and finally seems set to fulfil its potential. However, there will probably be better long-term buying opportunities in the months ahead…

"Brazil is the country of the future and always will be," goes the old joke. Previous periods of strong growth in Brazil have ended in turmoil, but the country has come a long way over the last few years and finally seems set to fulfil its potential and develop into an advanced economy.

Over the past decade, inflation has been tamed, with an operationally independent central bank keeping it below 10% for almost all of the past decade, compared with 2,500% in 1993. Growth is running at 4%-5% a year, external debt has declined dramatically, commodity exports are underpinning large trade surpluses, and foreign reserves have ballooned to $200bn. All this makes Brazil far less vulnerable to global crises.

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