Stability and growth in Brazil

Since the end of the 1990s, Brazil has succeeded in implementing and developing an economic model based on an inflation target model to keep domestic prices under control, a flexible exchange rate and a commitment to ensuring the solvency of the public sector. This model was initially adopted during Fernando Henrique Cardoso’s second term as president, and subsequently maintained and refined during Luis Inácio Lula da Silva’s two terms. Its development will certainly continue under the presidency of Dilma Rousseff. The consensus on this economic model and the relative dissociation of political and economic cycles have facilitated the stabilisation of the domestic environment and the acceleration of economic growth.