President Lula this week said Brazil is the ‘best prepared’ country to ride out the global economic crisis and would emerge ‘strengthened’ from it.

The director of Brazil’s Institute of Applied Economic Research (Instituto de Pesquisa Econômica Aplicada – IPEA), João Sicsú, was similarly upbeat, declaring ‘we are in a phase of overcoming the crisis will return to the path of growth in the second half of the year’.

There was positive evidence from BM&FBovespa, the Brazilian futures and equities exchange, which declared its second-quarter results on 12 August: the total trading volume in the second quarter of 2009 was up 20% on the first quarter.

President Lula attributed the level of capital inflows into Brazil’s financial markets to the solidity of the economy. ‘It would be a mistake to imagine that the foreign capital flows into the country reflect only financial speculation,’ he said.

He also declared himself in favour of another cut in interest rates: ‘We have the lowest interest rates in our history. It is desirable and possible to cut them even further.’

Source: Embassy of Brazil in London