More money is flowing in to Brazil in 2009 than the year before, very good news for the Brazilian economy.
In June 09 alone the Central Bank of Brazil reported a surplus inflow amounting to $866 million, four times larger than the net financial outflow of $205 million. A net inflow of $661 million in the first half of June 2009 is much better than the net outflow of $143 million a year ago, but where is all this money coming from, and why?
As China recovers it has been buying goods from countries around the World. Countries it chooses to trade with. China started ordering more goods from Brazil in February of this year and, ever since, Brazil’s economy has been improving. Specifically, China is buying Brazil’s iron ore, airplanes, raw materials and agricultural products.
With a strong central bank at the helm to control inflation and manage these cashflows, we expect even more economic growth stories to come out of Brazil in the next few months.
For a full report see World Currency Watch.
