For The Economist Brazil will be a superpower
The Estado de S. Paulo - 04/18/2008
"An economic superpower, and now in oil too". This is the heading of the editorial that the English magazine The Economist, one of most influential publications on economy of the world, dedicated to Brazil in this week's edition. The publication, whose cover deals with the food crisis also published several pages of an article about the Country. The magazine pointed out the growth of 5.4% of the Brazilian GDP in 2007 and its strength as a producer of raw materials. According to the publication, there are three reasons for the current Brazilian growth: control of inflation, end of external debt, and democratization. The good moment of the Brazilian economy, according to The Economist, is also a result of the high price of commodities. The discovery of the Tupi and Jupiter oil and gas fields, besides the estimated potential of the Pão de Açúcar field in the Santos basin, would make the Country the eighth country in the world ranking of oil producers. "Will Brazil become an oil power as well as an agricultural giant? ", questions the magazine. "Of all commodities Brazil exports, oil was considered, for years, the least relevant, due to its small reserves." If the recent discoveries get to materialize, Brazil will be side by side with Venezuela or Saudi Arabia, publishes the magazine. The publication also points out that, if confirmed, the wealth from oil can also be a reason for concern. "Oil can transform the Brazilian economy, but not necessarily for the better", it warns. "The Brazilian currency, the Real, has already gained value to levels that made exporters withdraw. If it becomes an oil currency, many industries may shut their doors, therefore the cost of making businesses in Brazil will become prohibitive".