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Austin, TX (ZPRYME NEWS) – 06/03/08 –2008 shocked the US economy and the rest of the world as the inevitable recession was realized early in January of this year, The New York Times reports “Fears that the United States is in a recession reverberated around the world on Monday, sending stock markets from Bombay to Frankfurt into a tailspin and puncturing the hopes of many investors that Europe and Asia will be able to sidestep an American downturn.”

Many countries were affected by the US economy’s downturn while some countries claimed to be unaffected or denied its effect on their economies.

On this stance, Brazil’s president Luiz Inacio Lula da Silva said Brazil could ride out US recession. Russia and Brazil belonged to the top emerging economies and recently conducted stand-alone talks together with China and India. The four compose what is coined as the BRIC economy. According to Associated Press’ (AP) report on, “Brazil is well-prepared to weather a U.S. recession”

Because Brazil has superbly diversified exports and its domestic markets are thriving this in effect has made foreign debt to slow down or be eliminated. President Luiz Inacio Lula da Silva aims to transform Brazil into a great economy as it is enjoying a prolonged prosperous roar. Currently, there is a high global demand for ethanol, iron ore and agricultural products, which Brazil can supply. It is predicted that the gross domestic product will increase around 5 percent per year through 2010. There is also a large domestic consumption of items like home and cars. Brazil has a domestic market of around 190 million people.

According to Silva, "People are buying more, and exports are growing because we don't depend on the United States and Europe alone. We're exporting to numerous countries around the world, and this leaves us calm in the face of an American crisis." Brazil’s edge remains to be its vast natural resources. The country is the world's number one exporter of ethanol, iron ore, beef, chicken, sugar, coffee and orange juice. Silva has a multi-billion-dollar anti-poverty initiative plan that will give jobs to Brazil’s poorest sectors. Roughly, the country will spend $6.4 billion and will hopefully help 24 million people all over the country especially farmers.

By

Zpryme: Emerging Markets Group

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