One of Brazil’s leading financial newspapers, Valor Economico, reported today that Brazil remains a highly sought-after destination for investments, according to the findings of several surveys that measured global confidence in various markets. This report comes after Fitch Ratings and Standard & Poor cut their rating for the country’s bonds to BB+ from BBB- with a negative outlook. Moody’s also placed Brazil on review for downgrade and the International Monetary Fund recently revised its growth forecast for Brazil this year to -3.5 percent. But despite these negative indicators, investors do not seem deterred. Therefore, the report’s findings suggest that Brazil’s economic problems appear to be cyclical in nature. They also support Geopolitical Future’s model that predicts Latin America will attract more foreign direct investment in 2016 due to its relative stability compared to many parts of Eurasia, which are currently facing severe and ongoing crises.
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