Brazil Sees G-20 US$ 1 Trillion Injection as Oxygen to World Economy

Downtown São Paulo, Brazil The decision by the G-20 to inject US$ 1.1 trillion into the global economy to prop trade and overcome the financial collapse can be beneficial for Latin America but measures have to be implemented and proven efficient, according to experts from the region.

"These resources will generate more liquidity worldwide and have a positive impact on the region's countries. With a reduction of systemic risk, this is positive for the whole world," said José Augusto Fernandez, Brazil's National Industries Confederation CEO.

"With more liquidity, and from the moment our trade partners are facing credit problems because of lack of financing, when credit begins flowing again, the whole world system is oxygenized," he added.

"For Latin America the 1.1 trillion injection is very good news," said Erik Haindl from the Gabriela Mistral University in Chile. "This effort will provide IMF and the World Bank with the resources they never had, and at a moment when there should be or rather, we are facing financial contraction it will help them give capacity to rescue those countries in need of help," he emphasized.

Closing the summit with a unanimous speech, G-20 countries also offered a contribution to alleviate the global financial crisis, said Eduardo Blasco an Argentine economist from Consultants Maxinver.

"The concrete measures decided are not that important on themselves, but the mere fact the summit took place and released a joint statement, is most positive. I think what is most valuable is transmitting confidence and a clear message that countries agree," added Blasco.

Mario Marconini, head of the São Paulo Industries Federation International Negotiations department underlined not only was the "positive atmosphere" and the prevailing "coincidences spirit" essential, but also the decision to support world trade with financial resources "is most welcome."

"Injecting 1.1 trillion US dollars to markets is very positive, particularly the 250 billion to promote trade. This helps a lot and will certainly benefit Brazil directly," said Marconini.

However he was also cautious about the fact that the real extent of the crisis remains unknown and so does how efficient the package is and how efficiently will it be applied. "Confidence building is the foundation but so is time, how long to the implementation and results," he underlined.

Mercopress

Tags:

You May Also Like

Let’s Speak of Brazilian Flowers and Mulattas

In the 60s, my mother, a countryside primary education school teacher, who little or ...

Brazilian Market Ends Rush Up Touched by US News and Oil Prices

Latin American markets were mixed, as Mexico was fueled by some key earnings reports, ...

Last Minute Polls Show Brazil’s Lula Lead Eroding. He May Be Forced Into Runoff

Less than 12 hours before the start of Brazil’s election to choose a new ...

Brazil Lets Airlines Offer Discounts on International Flights

The Brazilian government is starting to loosen its grip on international airline tickets including ...

Industry Creates 600,000 New Jobs in Brazil

Industry in Brazil was the leader in job creation in the country in 2004. ...

Mercosur Lawyers Raise the Bar in Brazil

The practice of law in the South-American continent is the theme of the 5th ...

Brazil Auto Sales Grew 10% in the First Semester

In June, the Brazilian automobile industry sold 148,491 vehicles, 3.9% more than in May, ...

Skilled Professional Robbers Are Keeping Me Away from Sí£o Paulo, Brazil

I never really liked Brazil's largest city – São Paulo – but now I ...

RAPIDINHAS

Found in a trunk 24 years after its author’s death, The Yellow Sofa is ...

For Brazil Justice Caving In to FIFA’s Demands Means to Issue a Banana Republic Certificate

Brazil’s Supreme Court (STF) is against the proposals made by Soccer’s International Federation, FIFA, ...