Euler Hermes Gruppe (Paris, France):

Subran L., Chief Economist, e-mail: antje.stephan@eulerhermes.com

At present time Brazil struggle with many problems, having the mood from “all is bad” to “the hope will be last to die”. The transition government probably can use the shock therapy and to initiate quickly the urgent reforms to rise national competitiveness. Positive example of Argentine allows to rely on it. However, at present time it’s better to avoid the new national conflict, there are lot of problems without such measures. Now Brazil is anxious about four negative factors: insufficient development of infrastructure, lack of investments, too high inflation and non-solvency in rising scale. Situation with large companies is a matter of especial anxiety. According to Euler Hermes Group data, number of bankruptcies increased by two times since March 2012.