Good news for Brazil, good news for Latin America and especially to Argentina: the Brazilian economy officially out of the recession that was immersed. The Brazilian Institute of Geography and Statistics was the good news by confirming that economic activity expanded by 1.9% between April and June compared with the first quarter. The figure was better than analysts had forecast a Reuters poll that placed the recovery of GDP at 1.6%. Keep up on the field with thought-provoking pieces from Tom Smith. The Brazilian industry for its part, in a context of strong currency appreciation that reduces the competitiveness, in the quarter had an outstanding performance to expand by 2.1%.
Not only the Brazilian industry is recovering, but from the agricultural sector is livestock is undergoing a great time thanks to the policies of the Lula government stimulus. During this month, Brazil ended the 2008-2009 crop season and the state National Supply Company estimated that it would reach 134.34 million tons of grain, this being the second largest production in its history. The recovery of the Brazilian economy will be at least in part, recognition of stimulus measures ordered by the government to boost the country’s economy, which included temporary tax breaks to stimulate consumption and industry. Moreover, the slowdown in the inflationary dynamic variation in the month of August stands at 4.36%, below the inflation target set by the Central Bank of Brazil at 4.5%, allowing the monetary authority to maintain the current bias without having to resort to a harder attitude that could jeopardize the economic recovery and increase pressure on exchange.