{"id":94648,"date":"2025-06-23T11:19:28","date_gmt":"2025-06-23T14:19:28","guid":{"rendered":"https:\/\/murray.adv.br\/?p=94648"},"modified":"2025-06-23T11:20:18","modified_gmt":"2025-06-23T14:20:18","slug":"brazils-growth-still-a-strength-but-reforms-needed-goldman-says","status":"publish","type":"post","link":"https:\/\/murray.adv.br\/en\/brazils-growth-still-a-strength-but-reforms-needed-goldman-says\/","title":{"rendered":"Brazil\u2019s growth still a strength, but reforms needed, Goldman says"},"content":{"rendered":"
\n
\n
\n
Foreign investors are returning, but high interest rates are a concern<\/em><\/strong><\/h6>\n<\/div>\n<\/div>\n
\n
\n
\n
\n
<\/div>\n

 <\/p>\n

 <\/p>\n

 <\/p>\n

 <\/p>\n

06\/23\/2025<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n

\n
\n
\n
\n

Brazil\u2019s economic growth, despite a long monetary tightening cycle, remains one of the country\u2019s key advantages. However, this expansion could be far greater if Brazil pushed forward with structural reforms, said Goldman Sachs executives during a visit to the country last week.<\/p>\n<\/div>\n

\n
\n

In an interview with Valor, Richard Gnodde, vice chairman of Goldman Sachs, and Kunal Shah, co-CEO of Goldman Sachs International and co-head of the firm\u2019s Fixed Income, Currency and Commodities (FICC) division, said Brazil has returned to the radar of foreign investors. This can be seen in the inflow of international funds into the local stock market. Still, the high level of interest rates remains a concern, as it continues to burden Brazilian companies.<\/p>\n<\/div>\n

\n

\u201cI think Brazil\u2019s remaining advantage is growth. The economy could double or triple over time. The right structural reforms would help unlock that growth. For me, that\u2019s the most important thing\u2014growth would allow the country to overcome its fiscal challenges. Not every economy has this opportunity,\u201d Mr. Gnodde said.<\/p>\n<\/div>\n

\n

\u201cGrowing 2.3% in a still very challenging macro environment shows the strength of the private sector,\u201d added Mr. Shah, who visited Brazil for the seventh time and gave his first interview to a Brazilian media outlet.<\/p>\n<\/div>\n

\n

Geopolitical distance<\/strong><\/p>\n<\/div>\n

\n

The war in the Middle East adds more uncertainty to markets, but Brazil\u2019s distance from the conflict could prove beneficial. \u201cYou\u2019re far from the specific areas of conflict, so people here can really focus on the country\u2019s economic issues and opportunities, and maybe spend less time worrying about geopolitics. In a way, that\u2019s an opportunity,\u201d Mr. Gnodde said.<\/p>\n<\/div>\n

\n

The global environment has also highlighted the importance of portfolio diversification, he said. \u201cPeople have remembered that the United States isn\u2019t the only economy in the world, nor the only place with opportunities.\u201d<\/p>\n<\/div>\n

\n

Brazilian economic challenges, its companies and sectors, and the ups and downs of the local economy are well known to international investors, Mr. Shah said. \u201cRight now, they are beginning to allocate funds back to Brazil. Part of that is due to macro fundamentals. Interest rates are very high while inflation is falling. The latest inflation reading came in below market expectations. So, when you look at real interest rates, Brazil has one of the highest among major global economies. And with a relatively stable currency, that\u2019s usually a good signal for the exchange rate and fixed income flows. It also boosts confidence,\u201d he said. He added that equity investors and others willing to take on currency risk are likely to follow\u2014something already being observed.<\/p>\n<\/div>\n

\n

Fiscal limits<\/strong><\/p>\n<\/div>\n

\n

Mr. Shah said Brazil\u2019s fiscal situation may have reached a limit, requiring a shift to avoid recessionary or unstable fiscal scenarios. \u201cThat\u2019s where checks and balances kick in, and you start to see the cycle reverse. I think that\u2019s why optimism is growing \u2014 because certain limits are being reached,\u201d he said.<\/p>\n<\/div>\n

\n

Still, he warned there are many questions about when there will be room for interest rate cuts. \u201cWhile high rates are good for capital inflows, they place a huge burden on companies and the economy. It\u2019s impressive how resilient the economy has been, and how growth remains strong even with such high rates. Our forecast for Brazil is 2.3% growth\u2014above consensus. This cycle is lasting longer than many expected. Part of it is due to still-high fiscal spending, which worries investors,\u201d Mr. Shah noted.<\/p>\n<\/div>\n

\n

The 2026 presidential election is also on investors\u2019 radar, he said, as they begin to evaluate \u201cwhat changes might come or whether there will be continuity.\u201d<\/p>\n<\/div>\n

\n

IOF decree<\/strong><\/p>\n<\/div>\n

\n

Mr. Gnodde said that in recent weeks, the number of questions from foreign investors has increased, particularly after the government issued a decree raising the Financial Transactions Tax (IOF) in several cases. The measure is expected to be overturned by Congress. \u201cIt was constructive to see how that was revised. I think the feedback was clearly taken into account, and that helped ease investors\u2019 concerns,\u201d he said.<\/p>\n<\/div>\n

\n

He added that what\u2019s missing is a catalyst to bring in more consistent capital flows. \u201cThe premium you\u2019re getting now to invest in Brazil is at a level where people feel comfortable. So that\u2019s positive. The question is: what\u2019s the catalyst that gets someone to make the decision today? Otherwise, they may just wait until tomorrow.\u201d<\/p>\n<\/div>\n

\n

Mr. Gnodde also highlighted the self-confidence of Brazil\u2019s business leaders, who remain optimistic about the country’s future. \u201cWhen you\u2019re running a business and taking out a loan that\u2019s going to cost you 15% to 20%, and you\u2019re still able to run a successful company, you\u2019re a good entrepreneur,\u201d he said.<\/p>\n<\/div>\n

\n

\u201cIf I were designing policy, I\u2019d just try to make their lives a little easier and create a more favorable environment. With a tailwind instead of a headwind, this business community can achieve great things. We travel the world, and people say, \u2018my God, interest rates are 3%, or 4%, or 5%\u2014it\u2019s so hard, it\u2019s impossible.\u2019\u201d<\/p>\n<\/div>\n

\n

Global-minded clients<\/strong><\/p>\n<\/div>\n

\n

The Goldman executives spent the week meeting with high-net-worth clients, institutional investors, and companies. \u201cThe client base here is unique. Brazilian investors are deeply rooted in a large domestic market, but also very connected to the global landscape. You can have in-depth conversations about what\u2019s happening in the U.S., Europe, and other emerging markets, and that\u2019s reflected in their portfolios. They are very sophisticated and well informed both globally and regionally. That makes conversations very productive,\u201d Mr. Shah said.<\/p>\n<\/div>\n

\n
\n

\u201cWe\u2019ve been in Brazil for 30 years. We\u2019ve seen many cycles. Highs and lows across different sectors, with different strengths at different times. That\u2019s why having a diversified business portfolio is extremely important. It\u2019s great when the IPO market is booming, but even when it\u2019s not, there are many other things we can do,\u201d Mr. Gnodde said.<\/p>\n

*By\u00a0Fernanda Guimar\u00e3es\u00a0\u2014 S\u00e3o Paulo<\/p>\n

Source: Valor International<\/p>\n

https:\/\/valorinternational.globo.com\/<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/article>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Foreign investors are returning, but high interest rates are a concern         06\/23\/2025 Brazil\u2019s economic growth, despite a long monetary tightening cycle, remains one of the country\u2019s key advantages. However, this expansion could be far greater if Brazil pushed forward with structural reforms, said Goldman Sachs executives during a visit to the […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8106],"tags":[26197,26196],"class_list":["post-94648","post","type-post","status-publish","format-standard","hentry","category-murray-news","tag-but-high-interest-rates-are-a-concern","tag-foreign-investors-are-returning"],"yoast_head":"\nBrazil\u2019s growth still a strength, but reforms needed, Goldman says - Murray Advogados<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/murray.adv.br\/en\/brazils-growth-still-a-strength-but-reforms-needed-goldman-says\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Brazil\u2019s growth still a strength, but reforms needed, Goldman says - Murray Advogados\" \/>\n<meta property=\"og:description\" content=\"Foreign investors are returning, but high interest rates are a concern         06\/23\/2025 Brazil\u2019s economic growth, despite a long monetary tightening cycle, remains one of the country\u2019s key advantages. However, this expansion could be far greater if Brazil pushed forward with structural reforms, said Goldman Sachs executives during a visit to the […]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/murray.adv.br\/en\/brazils-growth-still-a-strength-but-reforms-needed-goldman-says\/\" \/>\n<meta property=\"og:site_name\" content=\"Murray Advogados\" \/>\n<meta property=\"article:published_time\" content=\"2025-06-23T14:19:28+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-06-23T14:20:18+00:00\" \/>\n<meta name=\"author\" content=\"Gelcy Bueno\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Gelcy Bueno\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"6 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/murray.adv.br\/en\/brazils-growth-still-a-strength-but-reforms-needed-goldman-says\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/murray.adv.br\/en\/brazils-growth-still-a-strength-but-reforms-needed-goldman-says\/\"},\"author\":{\"name\":\"Gelcy Bueno\",\"@id\":\"https:\/\/murray.adv.br\/en\/#\/schema\/person\/dd0d0bea46c2436124555d18c1a0d52e\"},\"headline\":\"Brazil\u2019s growth still a strength, but reforms needed, Goldman says\",\"datePublished\":\"2025-06-23T14:19:28+00:00\",\"dateModified\":\"2025-06-23T14:20:18+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/murray.adv.br\/en\/brazils-growth-still-a-strength-but-reforms-needed-goldman-says\/\"},\"wordCount\":1022,\"keywords\":[\"but high interest rates are a concern\",\"Foreign investors are returning\"],\"articleSection\":[\"Murray News\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/murray.adv.br\/en\/brazils-growth-still-a-strength-but-reforms-needed-goldman-says\/\",\"url\":\"https:\/\/murray.adv.br\/en\/brazils-growth-still-a-strength-but-reforms-needed-goldman-says\/\",\"name\":\"Brazil\u2019s growth still a strength, but reforms needed, Goldman says - Murray Advogados\",\"isPartOf\":{\"@id\":\"https:\/\/murray.adv.br\/en\/#website\"},\"datePublished\":\"2025-06-23T14:19:28+00:00\",\"dateModified\":\"2025-06-23T14:20:18+00:00\",\"author\":{\"@id\":\"https:\/\/murray.adv.br\/en\/#\/schema\/person\/dd0d0bea46c2436124555d18c1a0d52e\"},\"breadcrumb\":{\"@id\":\"https:\/\/murray.adv.br\/en\/brazils-growth-still-a-strength-but-reforms-needed-goldman-says\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/murray.adv.br\/en\/brazils-growth-still-a-strength-but-reforms-needed-goldman-says\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/murray.adv.br\/en\/brazils-growth-still-a-strength-but-reforms-needed-goldman-says\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"In\u00edcio\",\"item\":\"https:\/\/murray.adv.br\/en\/home\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Brazil\u2019s growth still a strength, but reforms needed, Goldman says\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/murray.adv.br\/en\/#website\",\"url\":\"https:\/\/murray.adv.br\/en\/\",\"name\":\"Murray Advogados\",\"description\":\"PLG International Lawyers\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/murray.adv.br\/en\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/murray.adv.br\/en\/#\/schema\/person\/dd0d0bea46c2436124555d18c1a0d52e\",\"name\":\"Gelcy Bueno\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/murray.adv.br\/en\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/1ef2acfe966d6deacdeccd2a24ea89192c41fd05fc60e57b79021358a47f5641?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/1ef2acfe966d6deacdeccd2a24ea89192c41fd05fc60e57b79021358a47f5641?s=96&d=mm&r=g\",\"caption\":\"Gelcy Bueno\"},\"url\":\"https:\/\/murray.adv.br\/en\/author\/news\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Brazil\u2019s growth still a strength, but reforms needed, Goldman says - Murray Advogados","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/murray.adv.br\/en\/brazils-growth-still-a-strength-but-reforms-needed-goldman-says\/","og_locale":"en_US","og_type":"article","og_title":"Brazil\u2019s growth still a strength, but reforms needed, Goldman says - Murray Advogados","og_description":"Foreign investors are returning, but high interest rates are a concern         06\/23\/2025 Brazil\u2019s economic growth, despite a long monetary tightening cycle, remains one of the country\u2019s key advantages. However, this expansion could be far greater if Brazil pushed forward with structural reforms, said Goldman Sachs executives during a visit to the […]","og_url":"https:\/\/murray.adv.br\/en\/brazils-growth-still-a-strength-but-reforms-needed-goldman-says\/","og_site_name":"Murray Advogados","article_published_time":"2025-06-23T14:19:28+00:00","article_modified_time":"2025-06-23T14:20:18+00:00","author":"Gelcy Bueno","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Gelcy Bueno","Est. reading time":"6 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/murray.adv.br\/en\/brazils-growth-still-a-strength-but-reforms-needed-goldman-says\/#article","isPartOf":{"@id":"https:\/\/murray.adv.br\/en\/brazils-growth-still-a-strength-but-reforms-needed-goldman-says\/"},"author":{"name":"Gelcy Bueno","@id":"https:\/\/murray.adv.br\/en\/#\/schema\/person\/dd0d0bea46c2436124555d18c1a0d52e"},"headline":"Brazil\u2019s growth still a strength, but reforms needed, Goldman says","datePublished":"2025-06-23T14:19:28+00:00","dateModified":"2025-06-23T14:20:18+00:00","mainEntityOfPage":{"@id":"https:\/\/murray.adv.br\/en\/brazils-growth-still-a-strength-but-reforms-needed-goldman-says\/"},"wordCount":1022,"keywords":["but high interest rates are a concern","Foreign investors are returning"],"articleSection":["Murray News"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/murray.adv.br\/en\/brazils-growth-still-a-strength-but-reforms-needed-goldman-says\/","url":"https:\/\/murray.adv.br\/en\/brazils-growth-still-a-strength-but-reforms-needed-goldman-says\/","name":"Brazil\u2019s growth still a strength, but reforms needed, Goldman says - Murray Advogados","isPartOf":{"@id":"https:\/\/murray.adv.br\/en\/#website"},"datePublished":"2025-06-23T14:19:28+00:00","dateModified":"2025-06-23T14:20:18+00:00","author":{"@id":"https:\/\/murray.adv.br\/en\/#\/schema\/person\/dd0d0bea46c2436124555d18c1a0d52e"},"breadcrumb":{"@id":"https:\/\/murray.adv.br\/en\/brazils-growth-still-a-strength-but-reforms-needed-goldman-says\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/murray.adv.br\/en\/brazils-growth-still-a-strength-but-reforms-needed-goldman-says\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/murray.adv.br\/en\/brazils-growth-still-a-strength-but-reforms-needed-goldman-says\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"In\u00edcio","item":"https:\/\/murray.adv.br\/en\/home\/"},{"@type":"ListItem","position":2,"name":"Brazil\u2019s growth still a strength, but reforms needed, Goldman says"}]},{"@type":"WebSite","@id":"https:\/\/murray.adv.br\/en\/#website","url":"https:\/\/murray.adv.br\/en\/","name":"Murray Advogados","description":"PLG International Lawyers","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/murray.adv.br\/en\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/murray.adv.br\/en\/#\/schema\/person\/dd0d0bea46c2436124555d18c1a0d52e","name":"Gelcy Bueno","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/murray.adv.br\/en\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/1ef2acfe966d6deacdeccd2a24ea89192c41fd05fc60e57b79021358a47f5641?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/1ef2acfe966d6deacdeccd2a24ea89192c41fd05fc60e57b79021358a47f5641?s=96&d=mm&r=g","caption":"Gelcy Bueno"},"url":"https:\/\/murray.adv.br\/en\/author\/news\/"}]}},"_links":{"self":[{"href":"https:\/\/murray.adv.br\/en\/wp-json\/wp\/v2\/posts\/94648","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/murray.adv.br\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/murray.adv.br\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/murray.adv.br\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/murray.adv.br\/en\/wp-json\/wp\/v2\/comments?post=94648"}],"version-history":[{"count":2,"href":"https:\/\/murray.adv.br\/en\/wp-json\/wp\/v2\/posts\/94648\/revisions"}],"predecessor-version":[{"id":94650,"href":"https:\/\/murray.adv.br\/en\/wp-json\/wp\/v2\/posts\/94648\/revisions\/94650"}],"wp:attachment":[{"href":"https:\/\/murray.adv.br\/en\/wp-json\/wp\/v2\/media?parent=94648"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/murray.adv.br\/en\/wp-json\/wp\/v2\/categories?post=94648"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/murray.adv.br\/en\/wp-json\/wp\/v2\/tags?post=94648"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}