SAO PAULO, Dec 4 (Reuters) - The international outlook for emerging market economies continue to be challenging, but Brazil has “robust shock absorbers” that can cushion external turbulence, the country’s central bank head Ilan Goldfajn said on Tuesday.
The good thing is that investors still have appetite for risk and demand for emerging market assets has remained relatively stable, even though premiums are higher, Goldfajn told a meeting of bankers.
Indicators show the Brazilian economy is recovering gradually but continuously, though the approval of fiscal and tax reforms will be fundamental to achieve sustainable growth, he said.
“We are in the middle of the road and we need to advance in the process of reforms and adjustments,” Goldfajn said during a conference of the banking lobby group Febraban. (Reporting by Stefani Inouye Editing by Susan Thomas)