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With economic improvement, country risk is the lowest since 2014


The process of resumption of growth also resulted in the fall in the dollar and the rise of the stock exchange

Considered as a kind of insurance against default risk by a country, the country risk fell to the lowest level since December 2014 and reached 194.8 points. Measured by the Credit Default Swap (CDS), the result of the indicator reflects a greater optimism of the investors with the Brazilian economy.

"With the progress of a less troubled scenario, the maintenance of the economic team and the economic measures that the market judges as positive have favored the improvement of the price of Brazilian assets," said Haitong Bank chief economist Jankiel Santos.

For him, an overall improvement in the economy, both domestically and abroad, has been reflected in economic indicators.

It was not only the CDS that came to reflect a more positive outlook for the economy. On Tuesday morning (8), the stock market surpassed 68 thousand points and the dollar reached a low of R $ 3.12, signaling the good mood of the investors.


Analysts' assessment is that, under these conditions, economic reforms tend to advance and contribute to the consolidation of the resumption of growth.

"The trend we have seen in the last few days in the news is that the (Social Security) reform is more in line, it has returned to the agenda, and this ends up making the market more lively," Santos concluded.

According to Alex Agostini, chief economist at risk agency Austin Rating, the market movement is a reflection of the improvement in the economic environment but, above all, the expectation that conditions will continue to improve from now on.

"Internally some indicators have improved, such as inflation, debt," he commented. "(The risk) should continue to fall because there is the expectation of falling interest rates and lower political risk," he said.

Source: Portal Brasil, with information from Ipea