From June, 5438 to October, 2003, after President Lula took office, he implemented a fiscal austerity policy, reduced expenditure, increased income, and made every effort to curb inflation and stabilize the exchange rate. Brazil's dollar reserves have increased rapidly this year. Financial experts here believe that the reason is that Brazil bought US dollars by issuing bonds, and its foreign trade exports expanded, the trade surplus increased, and foreign capital poured in. According to the data released by Brazil's central bank in July 16, Brazil's current foreign exchange reserves have reached US$ 50.692 billion, surpassing Singapore and China, ranking seventh in the global foreign exchange reserves list, far higher than other Latin American countries.
Macroeconomic figures are gratifying, and the stock market is also picking up. Since the beginning of 2007, the stock index of Bovesta Stock Exchange in Sao Paulo has reached a new high almost every day. Since the beginning of 2007, the index has increased by 30.7%. Financial analysts believe that the sharp rise in the stock market shows investors' confidence in Brazil's economic development.
Brazil's economy, which has entered the fast lane, has a very optimistic development prospect. Brazil is a country with a vast territory and rich natural resources. The reserves of mineral resources such as iron ore rank among the top in the world, and the output and export of agricultural products such as soybeans rank among the top in the world. These resources and products are in short supply in the international market, and the prices have risen, which has increased Brazil's trade surplus. In addition, the development, utilization and export of bioenergy such as ethanol have changed Brazil's dependence on imported energy; Brazil is a big Latin American country with a population of 65438+800 million, and it is one of the most potential consumer goods markets in China countries. It can be said that Brazil's economic development has strong sustainability.