International market sees improvement in the country's economic conditions, which may attract more investments and projects
For foreign investors, the Brazilian economy is in a positive scenario. Moody's rating agency, which evaluates how much a site is safe for investments, will improve Brazil's rating from negative to stable. This can mean more dollars, projects and jobs in the country.
This change of perception, the agency explained by note, is due to an improvement in macroeconomic conditions. The institution also reported that it sees a recovery in economic growth in 2017 and a drop in inflation faster than expected.
The approval of the reforms that the government has sent to the National Congress plays a fundamental role in this change of scenery. Moody's points out that last year there was a more positive environment for these changes, which also shows that there is an improved functioning of the institutions.
Importance of reforms
"The government has already passed the approval of an important constitutional amendment that limits the growth of public spending to the inflation variation of the previous year for the next 20 years," it said. "In addition, Congress is debating the equally important welfare reform," he noted.
Moody's also explained that Brazil's rating could rise if structural reforms lead to stronger growth in the country. According to the agency, the continuity of current policies is decisive.