MercoPress. South Atlantic News Agency
Lagarde surprised at the ‘very slow’ recovery of the Brazilian economy
IMF Managing Director Christine Lagarde said she is unsure about Brazil’s economic outlook despite the country’s official estimate of 3.5% growth this year, since recovery is “very slow” as the 1% of 2012 showed. Read full article
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Disclaimer & comment rulesnext comment of c lagarde:
Jan 27th, 2013 - 10:47 am - Link - Report abuse 0“Lagarde surprised at the ‘very low’ recovery of the Argentine statistics.”
she doesn't understand because she chooses not to understand. It's a labor supply problem- unemployment is very low but labor costs go up faster than productivity. State employees being some of the most unproductive and expensive. Also we have bottlenecks that restrict growth Brazil but these issues are actually being addressed. we are in the bottom of the j-curve...
Jan 27th, 2013 - 05:22 pm - Link - Report abuse 0It's not that she does not understand, she has to go by figures and figures alone. That's why the Argentines are at odds with the IMF, because their figures can not be trusted to be true.
Jan 27th, 2013 - 07:25 pm - Link - Report abuse 0I guess she shouldn't make such public statements then. The bottlenecks in Brazil are astonishing- so much pent up economic activity stuck on the roads and ports and choked up because of red tape. You have to spend time here to really understand it. That is a major opportunity. It is not an issue of lack of demand, it is inefficiency and this can be addressed. Case in point:
Jan 28th, 2013 - 11:01 am - Link - Report abuse 0http://www.bloomberg.com/news/2013-01-28/epl-frees-30-port-capacity-to-ease-bottleneck-corporate-brazil.html
Asinine rules like this have held us back. The fact that Brazil is even growing with such issues amazes me. As the issues are worked through growth will pick up significantly
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