MercoPress. South Atlantic News Agency
Brazilian economy to contract 2% this year, and inflation 9% predicts French bank
BNP Paribas said in Sao Paulo that it expects Brazil's gross domestic product to shrink 2% this year, or double the contraction the French financial services company had projected one quarter ago. Read full article
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Disclaimer & comment rulesWhat assures me that the French BNP Paribas is doing sensible analysis this time? BNP Paribas missed the last three annual forecasts for Brazil. BNP predicted that in 2012, 2013 and 2014 Brazil was in recession with inflation above the target ceiling.
Apr 07th, 2015 - 10:59 am - Link - Report abuse 0These guys talk too much and say nothing.
Look, this speculation business has already broken the West. Failed expectations undermine the entire chain of productive investment and generates distrust of institutional investors, and in my view, generates illicit profits for speculators.
It needed better regulate the financial market. This only occurs through National States strong and committed to the common good.
But it seems that they all have “stuck tail.” It seems that all these funds make donations to politicians and political parties in their countries.
The Western crisis is caused mainly due to the mismatch between the productive sector and the speculative sector. A lot of money is linked to speculation or even tax havens. The production is the only way to generate wealth and satisfy human needs.
Speculation is a game of chance where many have “cards up his sleeve.”
If they don't stop the direct payments to the slum dwellers and the huge subsidies the economy will end up worse than the worst forecasts.
Apr 07th, 2015 - 12:51 pm - Link - Report abuse 0It is so very hard to have high inflation and recession.
It takes a special kind of idiot to concoct that dangerous cocktail.
It is very painful to fix.
Let's see what happens, my guess is the Marxist Monkeys will revert to type and try and print their way out of this.
Time will tell
It does not take a rocket scientist to figure out that Brazil could contract 2% this year, it could be more. Every week economists have revised down their figures for GDP growth, now it's negative 1.01% for the year. It's very easy to see this downward course hitting negative 2% or more by the end of the year. Therefore fair enough call by BNP Paribas with all the crap that's happening in Brazil. Geewhiz who would believe what the bank says ahead of the intellectual Brasileiro #1.
Apr 07th, 2015 - 06:11 pm - Link - Report abuse 0Looks to me like business in Brazil is grinding to a halt. It may be much worse than what people are predicting.
Apr 07th, 2015 - 08:18 pm - Link - Report abuse 0The PBR scandal has a long way to go.
Its not nearly done yet.
My bet is there are more bankruptcies to come as this rolls out.
@3 Tik Tok
Apr 07th, 2015 - 10:08 pm - Link - Report abuse 0“What assures me that the French BNP Paribas is doing sensible analysis this time? ”......Wow, what wisdom !! the brasshole actually believes he is smarter than international bankers, who have tons of highly qualified personnel monitoring and analysing economic data, day in, day out....he suffers from the same delusions that Lula does, who believes himself to be a statesman.....
But getting back on track, BNP is saying the exact same thing that other serious analysts are...and there is no indication - unfortunately - in the short or medium term, that Brazil will be able to extricate itself from the shit that Dilma and the PT got it into. It's going to get worse before it starts to get better. First step to halt going backwards, would be for Dilma to resign.
This says it all:
Apr 07th, 2015 - 10:15 pm - Link - Report abuse 0”The bank said in its quarterly Global Markets report that Brazilian economic authorities, including the Finance Ministry and the Central Bank, “are having difficulty getting their numbers in order.”
Given that FatAssDilma has always backed the lies of The Liar Mantega who can believe anything that Brazil claim as 'fact'.
2% seems for too light and I would not be surprised if reality comes out at 5% or more.
Once the Bolso Familias ends and it will HAVE to end there will be riots in the street and even more bloodshed than usual.
But they voted the crooks in, just like TDC, and the piper will have to be paid.
Brazil better start cutting back the free money to slum dwellers and massive corrupted subsidies asap.
Apr 09th, 2015 - 01:29 am - Link - Report abuse 0Inflation is running at 12% already
As I said last year these idiots are going to try to depreciate their way to prosperity.
Depreciate/inflation/raise incomes/depreciate/inflation
its all they know.
@ 7 yankeeboy
Apr 09th, 2015 - 11:48 am - Link - Report abuse 0“Depreciate/inflation/raise incomes/depreciate/inflation
its all they know.”
Well, it has worked so many times in the past!
Ha, ha, ha.
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