After the humiliation of 7-1 defeat against Germany in the World Cup finals, Brazilian economy isn’t doing better. I’m talking about the 7-1 defeat: inflation vs. GDP growth.
Brazilian Finance Minister Said to Estado newspaper in 29/04/2014.
Há boas perspectivas de crescimento mais vigoroso da economia, diz Mantega. Um dia após projetar o PIB de 2,3% em 2014, ministro da Fazenda volta a falar de crescimento ao afirmar que a crise iniciada em 2008 se enfraqueceu.
There are good prospects for stronger economic growth, says Mantega. A day after projecting GDP of 2.3% in 2014, Finance Minister talking about growth to confirm that the crisis started in 2008 has weakened.
PT Government, led by Dilma Rousseff, is controlling the principal prices until it passes the October presidential elections. The real inflation is almost 8% if the prices were driven by the market. Next government (whoever PT or its opposition) will suffer from this consequences.
Take car manufacturers as example, they are just laying off their workers in thousands, while Petrobras is lost 37% of its share since 2011 and so far its oil production is below expectations while it is willing to raise its prices next to 2014 end.
2014 is just a politically sport driven year to re-elect or bring a new business friendly government for Brazil investors who are just complaining about electricity/petrol fix prices and low ROI.
Fasten your seat belt, catch your job by nails, 2015-2019 will be even worse. because every one of the 50 million beneficent of bolsa familia will elect PT/Dilma and 8% inflation will strike our pockets and salaries.