Growth predicted for Brazil
Switzerland's largest bank Credit Suisse has predicted the Brazilian economy will grow 5% in 2010, as the nation emerges from recession. This is a revised estimate from the 4% predicted earlier and Credit Suisse also predicts that Brazilian GDP will grow by 1% this year. Brazilian growth is driving the Latin American boom as high domestic demand is helping to lift the country out of recession. Brazilian exchange rates have rallied significantly in recent weeks as confidence in the global economy improves.
Elsewhere in South America, Argentina is due to deliver the 2010 budget with former finance secretary, Daniel Marx warning that high public spending could lead to a deterioration of public finances and hinder economic recovery. Argentina is currently heading for its largest budget deficit since 2002. The deficit reached 570 million pesos in July, compared with a 3.2 billion surplus one year ago.
Exchange rates for the Brazilian real and Argentine peso are currently at 0.5501 and 0.2549 respectively per US dollar.
The rates quoted above are interbank rates. Client rates may vary according to the volume and timing of the trade.