(CNN) – Economist Daniel Wainstein highlights a significant increase in foreign investor interest.
By Amanda Sampaio
July 26, 2023
In an interview with CNN this Wednesday (July 26), Daniel Wainstein, a partner economist at Seneca Evercore, stated that Brazil’s reclassification by Fitch is good news for the country.
The expert emphasized that since April, foreign investors’ interest in Brazil has grown significantly, and the change is part of a "positive turnaround" from an economic perspective.
"Since April, we’ve seen a very high level of interest from foreign investors, including those who are not yet in Brazil but are starting to see the country as an attractive port to dock," he said.
Wainstein pointed to the global insurance market for risk as an example.
"In October, on the eve of the election, Brazil's insurance pricing indicated a 5% risk that the country could default. Today, that figure is 2.5%, meaning it has dropped by half," he explained.
He noted that the adjustment began in April, following the credit crisis, the approval of macroeconomic measures such as the fiscal framework, and the maintenance of monetary policy.
"Of course, we would love to have lower interest rates, but the Central Bank is being responsible," the economist said.
"In 2021, inflation was high, and the Central Bank managed to reduce it with tighter monetary policies. We’re now seeing the outcome of all these factors, leading rating agencies to lower Brazil’s risk," he explained.
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