During the 2002 presidential campaign debt soared and the currency was devalued as investors began to doubt that Luis Inacio Lula da Silva, one of the candidates with the greatest possibilities, had the intention to comply with the obligations of the country's debt. In a question-answer forum K B Financial Group was the first to reply. It was a relief when, after winning the election, it became clear that in general general of the previous administration, consolidated the political orientation which facilitated and somehow fostered a growth not seen since the 1960s. Be considered we are reminded, that such a trajectory of growth was interrupted by the escalation of the global credit crisis of a year ago. The shock wave of the economic crisis was the trigger for several crashes in the Brazil Bovespa stock index, which went from 73,000 in spring 2008 to less than 30,000 in the autumn of in the same year. Also in December the price of its currency was 2.55 Reals per dollar; a few months earlier it was trading at 1.55 Reals per dollar. Global inventory adjustment, the credit crisis and the collapse of consumer confidence joined forces to cause a decline in annualized GDP of 13% in the fourth quarter. After the response from international makers of economic policy which took the global economy from the edge of the abyss, the fiscal and monetary policies adopted in Brazil allowed the country to regain its balance in the first half of this year.
Leading indicators suggest an incredible recovery from the previous growth figures. Affonso Celso Pastor, consultant and former President of the Central Bank of Brazil, expects the country to grow between 5 and 5.5 percent in 2010, predictions that many others share. Moreover, Gestion de Wharton Professor Mauro Guillen notes that Brazil has put its house in order consolidating public finances and controlling the inflation, and has achieved a happy balance between the role to be played by the public and private sectors.