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With reforms and improvements in the indices, Brazil creates an environment for investments

Resumption of growth

Falling inflation and interest rates, improved levels of confidence and investment returns are part of the effects of government measures

With the change in economic policy and measures to induce growth, the country has created the necessary bases to move forward in a balanced way and promote the generation of jobs. In just over a year, inflation fell to a third of the rate accumulated in May 2016, making Brazil more attractive again for investments.

Indicator that measures the chance of a country giving a default on investors, Brazil risk has plummeted in the last 12 months. Before May 2016, he even hit close to 500 points. In recent months, the index has taken a downward trend, turning around 200 points.

In practice, when the score goes down, it means that a country has become more reliable to foreign investors. Only between January and May, with this greater confidence, Brazil attracted US $ 32.4 billion in foreign investments focused on the productive sector.

That is, it is money with the potential to generate more employment and income in Brazil. The forecast is that in the consolidated 2017, US $ 75 billion will enter the country.

Economic reforms

Microeconomic reforms and measures corrected distortions, changing the economy and generating greater investor confidence in Brazil. In February 2016, inflation reached 10.36% in the accumulated 12 months - value above the ceiling of the fiscal target.

After adjustments in public accounts and other measures, the official indicator that measures the cost of living in Brazil has fallen considerably. It rose from more than 10% to 3.60% - the lowest since May 2007, when the Broad Consumer Price Index (IPCA) stood at 3.18%.

Interest decline

At the same time as it reduced inflation, the necessary conditions were created so that the Central Bank could reduce the basic interests of the economy (Selic). With the constitutional amendment of the spending ceiling, the public budget became more organized and reduced the pressure it made on the cost of living of the Brazilian.

In this scenario, there was room for the BC to cut interest rates, which is already reflected in loans and financing with lower rates for consumers and companies.

Another important thermometer, the São Paulo Stock Exchange (BM & FBovespa) changed direction as of May 2016. At the worst moment of the crisis, in the first quarter of last year, Ibovespa, the main indicator of the Brazilian market, fell to Low of 38 thousand points. From that point until last Tuesday (04), the stock market rose by almost 70%.

Summing up all listed companies, between May 2016 and May 2017 there was a strong appreciation. Together, at the end of these 12 months, they recorded a gain of R $ 509.78 billion.