As Brazil continues to benefit from the return of growth and curbed interest rates and inflation, the São Paulo Stock Exchange (B3) has seen an unprecedented growth curve. In addition to achieving historical highs, the Brazilian stock market beat the performance of some of the largest stock exchanges in the planet. This means more people betting on national companies and the future of the country.
A survey made by the Brazilian government portal shows that the Ibovespa (the B3’s benchmark index) saw the highest growth rates in the world in the first quarter of 2018. While the Brazilian stock market went up by 8.65% in Q1, the runner up in the list, Argentina, showed a high of 3.87%.
The figures also show that Brazil is bucking the trend of developed country stock markets, such as London, Hong Kong and New York, which faced bitter losses in those first three months of the year. For specialists, the government’s conduction of economic policy has been instrumental for this positive scenario in Brazil.
According to Bruno Fernandes, an economist at the National Confederation of Trade in Goods, Services and Tourism (CNC), the forecast is that the Brazilian economic framework will see even further improvement in the coming months. Data from the institution shows that business confidence indicators continue to rise, which can lead to increased investments, more hiring and a boost to the positive cycle the country has entered into and that has pulled the stock exchange upward. “The process, albeit slow, of employment and income recovery tends to further boost entrepreneur confidence,” Fernandes says.
A strong capital market, with many public companies and investors, is important for economic growth. A stock exchange with expressive numbers means that companies have access to cheaper credit and consequently, have an easier time investing, which expands our workforce, creating jobs and wealth for the country.