The United States Secretary of the Treasury, John Snow, affirmed Monday, August 1st, that foreign investors are not afraid that the political situation in Brazil will contaminate the country’s economy.
Snow, whose post corresponds to that of Finance Minister in Brazil, believes that risk capital investors have a “positive outlook” regarding the performance of the economy.
“They recognized that, as a result of good policies, the economy is overcoming this political problem very well, whatever the crisis might be. Their attitude is positive.
“I really perceived that there exists a vote of confidence on the part of risk capital investors in terms of the direction of the Brazilian economy,” he told reporters in a press conference at the American Embassy in Brasília.
According to Snow, keeping inflation under control, relying on an “adequate and solid” macroeconomic policy, controlling the deficit, and lowering the ratio of debt to the Gross Domestic Product (GDP) enhance foreign investor confidence in Brazil.
Snow began his agenda of visits in Brazil, Monday, in the federal capital. He met early in the afternoon with the Minister of Finance, Antônio Palocci, and the president of the Central Bank, Henrique Meirelles. In the evening he met with President Lula.
When asked about Brazil’s interest rate policy, the Secretary said that “despite interest rates that are admittedly so high,” he believes that the prospects for the Brazilian economy are “really very good.”
“Meirelles knows a lot about interest rates. He certainly knows a lot. He’s a specialist, an expert on interest rates,” he affirmed.
For Snow, it is important for the country to ensure economic growth and job creation, an opinion shared by the Brazilian Minister of Finance and Meirelles, according to him.
“We understand that the Brazilian economy is creating many jobs, month after month. And both Palocci and Meirelles believe that the prospects are for growth, indeed, stronger growth after the first quarter,” he said.