The Macroeconomic Team of BNY Mellon ARX – BNY Mellon Asset Management’s new Rio de Janeiro-based investment boutique – explores the developments that leave Brazil in a position of relative strength in this difficult environment. Highlights include:

• Brazil’s reforms over the past decade have put the country in a good position to withstand the global economic crisis.
• In the wake of the Real Plan of the 1990’s, the country’s fiscal and monetary reforms have tamed inflation and greatly improved its external account position.
• The commodity boom helped Brazil build a large cushion of foreign exchange reserves, while the economy has diversified through manufacturing and service sector growth.
• Corporate growth will likely be further driven by the country’s burgeoning middle class and the entry of millions of people in the consumer goods markets.
• Brazilian equity valuations are at their lowest levels in a decade, with a number of factors suggesting that the market offers good value opportunities.

For more information or a hard copy please contact, please contact David Zigas at 617 248-6202.

The preceding information is based upon the analysis of historical performance of various asset classes and assumptions with respect to future economic conditions. Past performance is not an indication of future results. This information is not intended to provide specific advice, recommendations or projected returns of any particular BNY Mellon Asset Management  product.