Mario Garnero, Chairman of Brasilinvest,Brazil's pioneer merchant bank, stated this weekend inWashingtonthat BRIC countries (Brazil,Russia,IndiaandChina) will be "the powerhouse of world economy for years to come". He added thatBrazil's economy, whose dynamic growth has caught global attention, is "not experiencing a credit bubble."

He addressed an audience of business and political leaders during the 2011 World Congress of the Society for International Development. Garnero's talk followed lectures byEnrique Iglesias, former President of the Inter-American Development Bank, and Robert Zoelick, former United States Trade Representative and current President of the World Bank.

Founded in 1957, the Society for International Development (SID) is a global forum on headquartered inRome, Italyand it has over 3,000 members in 125 countries worldwide.

"Brazil's growth is based on sound macroeconomic management on the part of Brazilian financial authorities and the competitive advantagesBrazilhas been able to summon in technology-intensive areas, agriculture and energy. It is important that markets realize thatBrazilis undergoing a robust credit expansion, not a credit bubble," Garnero indicates.

The Chairman of Brasilinvest explains that Brazilian households owe less that 50% of their yearly incomes, whereas in most OECD countries household debts amount to nearly 120% of a family's annual revenues. Besides, most ofBrazil's austerity reshaping of the financial sector took place before the Great Recession that hit global markets as ofSeptember 2008.

In order to enhanceBrazil's capacity to compete, Garnero shows that PresidentDilma Rousseffis convinced of the need for labour, social security and fiscal updates inBrazil. "She is working with society towards these much-demanded reforms." Garnero points out thatBrazilis now mostly a middle-class country. Social Ascension has been commonplace and unemployment kept at bay by the vigorous expansion of the domestic market.