Should Brazil's inflation, slowing economic growth and the political risk put investors off? Not necessarily, according to one Latin America analyst.
"I think the long-term fundamentals in the country are still quite good, when you're looking ahead five to 10 years. It's not just about the growth rate, it's about the markets and where the opportunities for investment are," James Lockhart-Smith, principal Latin America analyst at Maplecroft, told CNBC on Friday.
"Panama might have a much higher growth rate but Brazil is still the main economy in the region. So I wouldn't be so pessimistic about it. It's neither as good as the government says it is, or as bad as a lot of market commentators say."
Despite Lockhart-Smith's confidence, Brazil's economic fundamentals are shaky. The country's gross domestic product (GDP) growth has slowed from 7.5 percent in 2010 -- when the economy was largely fuelled by foreign investments, a credit boom and consumption -- to a predicted 2.5 percent in both 2013 and 2014, according to figures from the International Monetary Fund (IMF).
Inflation is expected to remain well above the Central Bank of Brazil (CBB) 4.5 percent target when the country's consumer price index (CPI) data is release later on Friday, details which could further prompt the central bank to hike interest rates further despite a backdrop of slowing growth.
In December, the central bank hiked its benchmark rate interest rate further to a record 10 percent, the highest since March 2012.