Sao Paulo and Rio do Janeiro among the 12 most expensive cities in the world

Wednesday, July 13th 2011 - 00:44 UTC

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Brazil’s two biggest cities are getting more and more costly and are more expensive places to live in than New York, according to the annual cost of living study released Tuesday by business consulting firm Mercer. Read full article

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Forgetit87
“Investment dollars are flooding into Brazil’s booming oil industry and to help it with the infrastructure necessary to host the 2014 World Cup and 2016 Olympics.”

Oh my... The currency has been strengthening since 2006. This has nothing to do with the cup or the olympics.

“Another factor is the booming commodities market”

Exports account for less than 10% of GDP, and Brazil actually has current account deficit of around 2% of GDP. This means that, if it were for trade alone, the real would already have devalued by quite a bit. The currency is strong because of financial, not trade, transactions. Moreover, Brazil's strong currency has caused its external sector to be dominated by primary exports, not the other way around.
Jul 13th, 2011 - 01:44 am - Link - Report abuse 0
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