For generations, Brazil has been known as the "country of the future", quickly followed by the less complimentary view that "it would always be the country of the future."  More recently, Brazil has been included in the high potential "BRIC" group of emerging markets.  My trip last week to Brazil suggest that the long wait may finally be over.

The Brazilian economy is experiencing a mini-boom, as it has done many times before, but this one is underpinned by serious fundamental factors.  Growth is strong, inflation is in check, currency reserves are up, the Reais has strengthened and is poised to move below two to the US Dollar, IPOs are coming fast and furious, and, most tellingly, there is a general expectation that Brazil's debt will be upgraded to investment grade in the near term.

Ironically, this economic success is coming in the second term of President Lula of the PT (workers party) who was originally seen as another Hugo Chavez.  Lula probably owes his recent re-election more to his sound economics team than to his socialist policies.  In particular, Henrique de Meirelles, the Governor of the Central Bank, has done a masterful job of promoting growth while keeping inflation, Brazil's great historical nemesis, well under control.

I have been coming to Brazil for over 40 years, during which time I have made over 25 trips.  I have always been struck by the warmth and optimism of the people and the incredible potential of the country.  Not all is rosy, of course.  Official corruption is still a problem, crime has gotten worse, prisons are run by the prisoners, and, perhaps worst of all for the average Brazilian, the national football team is led by rich and aging prima donnas who have been playing well below their potential.

In this generally benign environment, the Reuters business in Brazil has been performing very well, and I could not be happier for the excellent professional team of Brazilians who run it.