MercoPress. South Atlantic News Agency
Brazil’s April current account deficit a new record pushed by negative trade balance
Brazil posted another hefty current account deficit in April as its traditional trade surplus has turned into a deficit this year and foreign companies are repatriating more of their profits, according to central bank data. Read full article
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Disclaimer & comment rulesThe stagnation in foreign investment which started in mid 2011 was in direct response to Mantega lying about record growth rates when it turned out to be no such thing. That was a surprise NOT!
May 27th, 2013 - 01:57 pm - Link - Report abuse 0And, if you consider the trend (albeit on very few plot points) the 67 Billion looks decidedly wrong.
The giveaways to ethanol and the auto industry have worked against Brasil for obvious reasons which I have explained on a number of passed posts.
Only a real clear out of the finance ministry, starting with the Minister himself, will even BEGIN to make a difference.
Without very high foreign money flows into Brasil ALL the infrastructure improvement programmes announced by Dilma will be at risk. Does Brasil really want to sell itself to the Chin?
On a final note, I do hope the fact that foreign investors are repatriating more profits back home does not result in a Cristina type fuck-up response by Dilma. That really would be a negative action.
ChrisR ,There is a danger that she will act like Argentina she o ready started controlling the price of electricity that was a sign that she will take measures like any socialist communist they can help their nature will overcome to show her true worker party membership that she is, her pride in maintaining a popular policy to gain politically will come true or Brazil will swing to the right like they never before.
May 28th, 2013 - 01:07 am - Link - Report abuse 0As I have said, Brazil ( and Argentina) is going back to the economies of the 70s.
May 28th, 2013 - 12:25 pm - Link - Report abuse 0It has not learned ANYTHING in the last decade and will slip right back to devaluation and hyperinflation if they are not careful and fix this problem immediately.
They have fundamental/societal problems that need to be fixed first before they will ever see real and sustained growth.
There are just too many poor and lazy people for them to ever be considered a world player in our lifetime.
1 Chris R . If I remember rightly The Economist suggested that Dilma change the Minister because he kept in saying the wrong thing / forecast ! Dilma' s. reaction ? She got annoyed . I agree with Yankeeboy in that it is a worry that Dilma will follow Christina . However , I am told that the São Paulo “ boys ” have considerable influence . Plus , dare I say it , Brazil still has a very powerful army !
May 29th, 2013 - 03:25 pm - Link - Report abuse 04 Baxter
May 29th, 2013 - 06:23 pm - Link - Report abuse 0I would hope that the businessmen of São Paulo DO have great influence considering the area is the powerhouse of the industrial economy.
However, I am confused with your final sentance: what are you suggesting she will do with the army?
5 . No , it is what the Army might do if things go wrong ! One has a feel , nothing more concrete , that Lula and now Dilma have followed a cautious economic/political course because they know that the Army is still very powerful . One does note that little has been done to investigate activities during the years of military rule . True that rule was benign when compared to other countries . No disappearances or other nasties . In fact I remember that when they were talking about investigating this the Army suggested , politely , that they also investigate what lead to the coup . Random murders , kidnappings and so on .
May 29th, 2013 - 09:19 pm - Link - Report abuse 0Is pretty obvious by now, that Brazil goes towards a huge recesion just after the 4 year party time theyre going to go through starting next month. By 2017 we will be talking about hyperinflation and devaluation just like Argentina in 2001.
May 30th, 2013 - 02:05 am - Link - Report abuse 0@6 The army is not that powerful. Since “democracy” came, the leftists made them weak and very very unpopular.
May 30th, 2013 - 04:31 am - Link - Report abuse 0However, politician Jair Bolsonaro has an impressive amount of support, specially a growing conservative movement lead by protestants. Not that I agree with what he says, but “Pinochet should've killed more people” is a classic! LOL
6 Baxter
May 30th, 2013 - 01:09 pm - Link - Report abuse 0Ah! Thank you for pointing that out to me.
Not having lived in a country that routinely has a military government of one form or another I missed that entirely.
Oh well, must concentrate more! :o)
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