Rousseff backs emerging economies at Davos
January 25, 2014, 6:09 am

Rousseff was addressing the 2500 political and business leaders gathered at the elite Swiss ski resort [World Economic Forum]

“It is a hasty view that, after the crisis, emerging economies will be less dynamic. They are very dynamic because there are great opportunities. Especially because the current investment flows and trade and high rates of employment and opportunities in these economies’ horizon point in another direction, the direction – I repeat – of opportunities,” she said.

Rousseff was addressing the 2500 political and business leaders gathered at the elite Swiss ski resort.

“Brazil is today one of the broadest boundaries of business opportunities. Our success in the coming years will be associated with the partnership with investors from Brazil and around the world,” she said.

In a bid to reassure the world about the commodities powerhouse, she said foreign investment in the country was always “well received”.

“My government has taken steps to further facilitate this relationship. Aspects of recent events should not obscure this reality,” she urged pointing to a steady foreign investment flow in the country.

Latin America’s largest economy attracted $64.045 billion in foreign direct investment in 2013 as a recession hit-EU and a slowly recovering US economy fails to garner much enthusiasm among foreign investors.

The Brazilian President on Friday assessed that “a new round of global economic growth is in the gestation stage and as the crisis is dissipating, a closer look at emerging countries gain breath”.

“With a long-term strategy focused on investment promotion, education and productivity growth, Brazil will come out even better after this international crisis,” she said.

Brazil posted a current account deficit of $8.678 billion in December, central bank data showed on Friday.

Admitting the challenges, Rousseff in Davos said that “fiscal responsibility and monetary stability are priorities” of her administration.

At the forum on Friday, Rousseff also highlighted government actions to reduce debt and balance public accounts, without compromising with inflation.

“Expenditure remains under control, Brazil has one of the lowest public debts in the world and respects contracts and presents a stable and attractive investment environment,” she said.

Brazil, Rousseff claimed, is now “less unequal” and “is being built keeping the soundness of macroeconomic commitments, where stability is a core value”.

Rousseff said she is determined to promote a strong increase in investment in “infrastructure, education and innovation”. She cited examples of how the government seeks to boost investment in partnership with the private sector, such as the auctions of highways, the airport concessions, the new regulatory framework for the port system and auctioning of the Libra oilfield.

TBP