Brazilian GDP growth soars to 9% in the first quarter. This result came as surprise to analysts everywhere. It is too good. But it is true. It seems Brazil is not contaminated by international problems and grows on strong domestic demand. And inflation is under control..
A friend in asset management in Sao Paulo, Ricardo Leirner, is worried about the euro. He shows in this graphics that European banks risk are on the highest level ever.
His comment: “As you can see, risk of European banks is still going up… actually it is on the highest level in the past 6 months.
Is this a sign that problems in Europe are not over yet?”
If Brazil is doing so well while the rest of the world is going through difficult times, could it mean that Brazilian economy has gone into a virtuous phase? Not so long ago, we posted the remarks of Standards & Poors, Regina Nunes about the problems in Europe and its effect in Brazil. It seems she was right. Should we expect a revision of the 2010 growth forecast? Could it pass 6%? And next question: is 6% sustainable?