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Brazil's resilience highlighted by credit growth
28/10/2011
Brazil is continuing to demonstrate its ongoing resilience in the face of financial turmoil, after figures showed that credit grew in September at its fastest monthly rate for the whole of 2011.
The figures from the central bank also showed that property prices in some of Brazil's biggest cities were still rising by an average rate of 22-28 per cent a year, indicating that Latin America's largest economy is managing to stay strong, as oppose to the financial difficulties being experience in the US and Europe.
While the expansion of Brazil's economy has significantly slowed from its Asia-like rates of last year, there is no indication of any economic collapse as the country's growing middle class is still spending and unemployment is steadily falling.
The figures from the central bank have been welcomed by economists, who had mixed sentiments towards a report issued by the Organisation of Economic Co-operation and Development (OECD) earlier this week, which confirmed that the country's economic growth rates were steadily falling, and would continue to do so.
The central bank said that the country's credit had been boosted by the depreciation of the Brazilian real against the US dollar in September. Excluding the foreign exchange effect, though, credit growth would still have risen 1.8 per cent in September, a growth rate comparable with August.
The figures from the central bank also showed that property prices in some of Brazil's biggest cities were still rising by an average rate of 22-28 per cent a year, indicating that Latin America's largest economy is managing to stay strong, as oppose to the financial difficulties being experience in the US and Europe.
While the expansion of Brazil's economy has significantly slowed from its Asia-like rates of last year, there is no indication of any economic collapse as the country's growing middle class is still spending and unemployment is steadily falling.
The figures from the central bank have been welcomed by economists, who had mixed sentiments towards a report issued by the Organisation of Economic Co-operation and Development (OECD) earlier this week, which confirmed that the country's economic growth rates were steadily falling, and would continue to do so.
The central bank said that the country's credit had been boosted by the depreciation of the Brazilian real against the US dollar in September. Excluding the foreign exchange effect, though, credit growth would still have risen 1.8 per cent in September, a growth rate comparable with August.
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