In the next few years, the World Cup and Olympic events will promote the rapid development of Brazil's infrastructure construction, financial anemia in Brazil in urgent need of foreign investment, which bring huge business opportunities to China's infrastructure sector.
Lula of G20 summit in Seoul in early November, he severely criticized the Federal Reserve to promote the depreciation of the dollar, and said it would take measures to prevent the appreciation of the currency of Brazil. But in the Standard & Poor's sovereign ratings division director Sebastian Briozzo opinion, the exchange rate issue is not bothering the main problems of Brazil's economic growth defects of the fiscal policy is Brazil continued growth of the hidden dangers.
Sebastian Briozzo said he was more worried about the hidden dangers of Brazil in terms of fiscal policy.
Moreover, Brazil's fiscal policy in the structure of a problem. Sebastian, Briozzo told this newspaper: Brazil's fiscal revenue has accounted for about 30% -40% of GDP, the national burden of taxes has been heavier, future revenue growth, space is limited. The structure of fiscal expenditure is unreasonable, most of the current expenditure of the wage expenditure for investment part is not conducive to sustained economic growth.
Brazil will host the World Cup in 2014, hosting the Olympic Games in 2016. So, in Rosoff ruling Brazil into the next four years, the financial "anemic" Brazil must speed up investment in infrastructure construction, which forced the Brazilian to seek foreign "blood transfusion".
Sebastian, Briozzo told this newspaper that Brazil's export proportion of GDP, only slightly higher than 10%, Brazil's economic growth is more driven by domestic demand, so the exchange rate fluctuations, commodity price volatility is not the main problems of troubled Brazilian economy growth.
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Standard & Poor's sovereign ratings department director Sebastian Briozzo predicted that Brazil's 2011 economic growth rate of 4.5 percent, lower than the 7.5% GDP growth data in 2010. Sebastian, Briozzo in the World Bank, is primarily responsible for sovereign debt rating on Brazil and other Latin American countries.
in January 2011, the Dilma · Rosoff official inauguration of Brazil's first female president, Lula era came to an end eight years of governing BrazilWorld Steel Pipe .Sebastian Briozzo said, Although China has become Brazil's largest export destination, but Brazil is not export-oriented countries, the overall export volume accounted for only less than 10% of GDP, domestic demand-driven economy, so, Brazil Infrastructure industry business opportunities for Chinese businessmen may be more valuable.
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Standard & Poor's forecast, the Brazilian government debt as a percentage of GDP in 2010 2012 will be over 40%. Sebastian Briozzo think, the Brazilian government debt is too high world pie network information , scale and under ideal conditions, Brazil should be gearing ratio reduced to about 30%.