Brazilian Economy Will Not Have 7% Expansion Again

05/08/2013 - 08h21

The Brazilian economy will not grow 7% or 8% a year, says economist Dani Rodrik, a professor of international political economics at Harvard University and one of the top specialists in developing economies.

He says the favorable global environment - China's major growth, high prices of commodities, expanding developing countries - will not be repeated.
"It's realistic to expect a growth rate of 3% to 4% in Brazil," Rodrik told Folha - he participated in an event of "Carta Capital" magazine yesterday.

He also says the phase of high growth in the world is over. Brazil, with solid democratic institutions, is resilient.

"But Brazil shouldn't be too ambitious, it must be careful, financially secure, to deal with the external shocks that are likely to come."

He believes having Brazilian Roberto Azevêdo at the head of the WTO is "very positive."

"Brazil can take a pragmatic, not a doctrinaire, approach to the WTO, which represents a step forward from the radical free trade proposal - that is how Brazil's current economic policy works."

Translated by THOMAS MUELLO

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