Despite US Slowdown, Smooth Sailing Forecasted for Brazil

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The global economy is expected to grow less in 2006, but the slowdown in the US, European, and Japanese markets should not derail development in emerging countries like Brazil.

This is the assessment made by the executive director of the World Bank (IBRD), Otaviano Canuto, at a seminar, "Prospects for the Brazilian and Global Economy in 2006," in Rio de Janeiro, in the Brazilian southeast.

According to Canuto, the emerging markets, which have changed for the better, are not faced with the likelihood of crisis or recession.

"The situation in the emerging markets will not be affected by a possible mild setback in the global economy. No country is in bad straits, and this goes for Brazil," he added.

Canuto observed that 2006 began under a cloud of anxiety cast by the disappointing Gross Domestic Product growth in the United States in the final quarter of last year. Nevertheless, he considered that the effects did not spill over into the European and Asian economies in January.

The executive pointed out that the major positive impact on the global economy this year will be the incorporation of 40% of the world’s population into the labor force. And this covers only the influx of Chinese and Indian workers.

Agência Brasil

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