The Brazilian economy may face a potential crisis as its fragile foundation could barely withstand the impact of a new global financial turmoil, a local economist warned.
Reinaldo Goncalves, economics professor at Rio de Janeiro Federal University, said Brazil could be hit hard in case of a new global crisis, mainly because of the country’s heavy dependence on external financing and current account deficit.
“If the world decides to demand what Brazil owes and not finance the annual current account deficit, Brazil will quickly undergo an exchange, financial and currency crisis,” Goncalves told Xinhua in an interview.
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