Brazil Pays for its Own Success

Reuters on 7th of March, pointed an analysis: “A stagnant Brazil falls victim to its own success” talking about the complexity that Brazil is facing to sustain its growth rates, which the president, Dilma Rousseff, promised in her presidency campaign.

To stable the economy growth -which fall to 2.7% in 2011 from 7.5% in 2010- Brazil fights on several fronts:

  • “High inflation” 6.5% in 2011, Whether it’s paying $40 for a pizza, $50,000 for a locally built Toyota sedan, or some of the world’s highest rates for electricity, both manufacturers and consumers are struggling with what has become known as “the Brazil cost” — the product of high taxes, tight labor markets and woeful infrastructure
  • “Currency war” Real Appreciation against Dollar as Goldman’s O’Neill Says Brazilian Real Needs to Lose 20% to Be ‘Sustainable’,
  • And “Monetary Tsunami” as $15.5 billion poured into Brazil since 2012, even though Folha De S.Paulo reported that Brazil extended a 6% tax known as the IOF on overseas loans with maturities of up to five years.

Dilma blamed the predatory actions by developed countries for Brazil “escape” from recession in 2011; while Mantega, the finance Minister, promised growth rate of 4-5% in 2012.

Advertisements

About Rami Alhames

I'm a Syrian Brazilian, Freelance Translator and Social media contributor @GlobalVoices @GVinArabic, Meedan, in Portuguese, Arabic and English.
This entry was posted in Crises, Econmoy & Business and tagged , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s