Brazilian Finance Minister Guido Mantega said Thursday that emerging economies will continue to be the locomotive of the world's economic growth.
"A new world may emerge from the current international financial crisis, in which developing countries will play a fundamental role," Mantega told a press conference here.
Developed countries are less prepared to face the crisis, with their low GDP growth, stagnant domestic market and a financial system that is "contaminated by rotten assets," Mantega said.
Mantega said the emerging economies are dynamic as "their GDP is expanding, the domestic market is growing and the financial system is in a sound condition."
The minister praised the proposed U.S. financial bailout plan, saying the measures were correct and necessary. Mantega blamed the crisis on the high leverage of U.S. banks.
"What makes the Brazilian financial system strong is that we have correct rules," he said. "leverage here is controlled."
Mantega said Brazil's GDP is expected to grow 5.5 percent in 2008, up from 5 percent last year, and may slow to 4.5 percent in 2009, still higher than estimated global growth.
Source:Xinhua
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