Being the second largest and eighth largest economy in South America and the world respectively, Brazil has been among the top traders globally. This country has in the past few decades managed to grow extensively to be one of the biggest trading partners for most of the countries in the word. Due to its economic growth and success, the country has grown to the extent that it was able to host the World Cup last summer. During this year’s summer, the country is expected to host the 2016 Olympic Games in its Rio. According to an experienced business person and investor from Brazil Igor Cornelsen, the coming Olympic games will be a true test for the countries economy and its stability. The country was recently trying its new economic matrix to help boost its economy further, will be able to gauge the might of its economy during this time. Igor Cornelsen says that the country will have no option but to move back to its market-oriented economy which has so far helped the country come this far to support this event.
Igor Cornelsen says that the country’s new economic matrix badly affected stock prices. The effect was so bad especially on those sectors that related to the government. During the period for this economic plan, the country recorded a GDP growth rate below 2%. As the figure stood at $2.5 trillion, most investors had lost their confidence in the economy as it had been going down for over six years. Igor Cornelsen states that natural resources which are available in plenty in the country and stable agriculture production are the supporting pillars of this countries economy. The country also has a fast growing middle class that has the potential to change the country’s economic face if it is empowered.
Igor Cornelsen goes ahead to add that market-oriented reforms working together fiscal austerity offer the best possible chances for the country to succeed. Most of the investors in this country’s markets are careful to evade any negative reaction that may arise in the economy. This prominent stock markets investor adds that Brazil should also concentrate some of its efforts to its major trade partner, China. He says that China may have a great role to play in the revival of the country’s economy as both countries have an intrinsically linked economy. As the Chinese economy grows and gets stronger, Brazil might be able to borrow a leaf and also grow as its raw materials will be able to get good prices. The country should also check its markets and rectify its overvalued currency. Igor Cornelsen says that economic sagas such as that of Petrobras badly hurt the nation’s economy. The country should fight corruption within its government and try to cut down on its expenditure. This money as Igor Cornelsen says should be used to provide more opportunities for the country’s middle class.