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Economy: Brazil is cautiously optimistic about recovery

Stimulus measures to be retained; New oil finds boost growth prospects

  Miguel Jorge, minister of development, industry and foreign trade in Brazil

"It is too early to pay out and reverse all the measures we took last year. We need to wait and see what is going on in the world economy"

Miguel Jorge

Brazil’s officials have a right to feel smug. The country is showing tentative signs that it is emerging from the recession, with economic growth reaching 1.9% in the second quarter. In addition, the government got a boost last month when Moody’s joined Standard & Poor’s and Fitch in awarding the sovereign investment-grade status. Despite these positive signs, Miguel Jorge, minister of development, industry and foreign trade in Brazil, is still cautious about the country’s outlook. "It is too early to pay out and reverse all the measures we [the Brazilian government] took last year. We need to wait and see what is going on in the world economy – in the US and UK. It is not clear what is going to happen globally and so we need to be cautious despite the impressive second-quarter figures."

Henrique Meirelles, central bank governor, adds: "[It’s] not time to lower our guard."