Analysts expect Brazil's economy to contract by 2.44% this year, marking the worst performance since 1990, and inflation will hit 9.29%, the Central Bank said Tuesday. The latest figures represent a downward revision from last week, when analysts expected Latin America's largest economy to contract by 2.26% and inflation to come in at 9.28%. Read full article
Comments
Disclaimer & comment rulesI do believe that a Brazilian recently said that it was my country that was going to turn into a zombie.
Sep 09th, 2015 - 10:18 am - Link - Report abuse 0But Brazil isn't even sleep walking into this recession it is on zombie auto pilot.
This recession isn't just because China is slowing down. It's structural because Brazil failed to reform during the boom times and instead started to act as if the boom would last forever and the problems could be ignored as unimportant.
Even now, where is the REFORM?
Where are the major institutional and structural changes to the way the country works?
Cut the size of the government.
Reduce the politicians.
Reform taxation.
Privatise.
Do something.
Instead Dilma sits there picking lint out of her belly button. The country is fixated on what to do with her and she is focussed on just keeping her job. If she was a true patriot AND leader she would clear the decks.
Resign and call an election.
Brazil needs leadership and she can't provide it.
I think the Brazilian politicians saw it as the boom times for their private bank accounts.
Sep 09th, 2015 - 11:24 am - Link - Report abuse 0Soon the BRICS countries did not accept the dollar as currency in trade and investment transactions.
Sep 09th, 2015 - 11:45 am - Link - Report abuse 0The West has its days numbered. R.I.P.
@3 Oh, really? Brazil is the future and always will be. Never the present.
Sep 09th, 2015 - 12:06 pm - Link - Report abuse 0The Brazil have influence over half the world's countries or even more. And we will work to the exclusion of the dollar is universal. We may have a future, but you only have the past.
Sep 09th, 2015 - 12:33 pm - Link - Report abuse 0http://www.exportnews.com.br/2015/09/balanca-comercial-superavit-de-us-554-milhoes-na-1a-semana-de-setembro/
4 days = half billion
Dollar is toilet paper, nothing more.
TOLD YOU!
Sep 09th, 2015 - 12:39 pm - Link - Report abuse 0It was always going to be beyond the few months that were claimed.
It will probably run to 10 years before everything is back financially to the period where car manufacturers were putting up new plants and I bet Mercedes are pig sick at what has happened to their plans.
A few months ago the MB importer for UYU was offering reasonably specced C Class automatics for U$D60k which when you realise how expensive cars are here (a VW Jetta DSG is U$D37,600) that was a bargain brought out of desperation I suspect.
@5 You misunderstand the comment I made. The future is never here.
Sep 09th, 2015 - 12:49 pm - Link - Report abuse 0If you believe your nonsense statement then good luck to you.
Oh no!
Sep 09th, 2015 - 12:59 pm - Link - Report abuse 0The BRICS might not use the US dollar?
Considering 3 out of the 5 BRICS posted negative growth last quarter I'd say they have bigger worries.
Poor Brasileiro thinks the west is just the US. So limited.
@5. Can you understand that the world's major countries have abilities far beyond yours. China is failing big time. Russia is trying to use military capability to justify its criminal actions.
Sep 09th, 2015 - 03:34 pm - Link - Report abuse 0Brazil can be defecated on without any problem. In reality, there are only two major powers. The UK and the US. The UK has ability. The US has equipment. China has massive wild offensives. Easily ended. Tactical nukes. Russia is slightly better. But, demonstrably, Russian equipment is third-rate. So is Brazil.
Brasshole - Brazil is going to the dogs and your socialist brain still manages to fire shots against the supposed west. Mind numbingly stupid. The great majority of Brazilians desire there country in many ways to be like countries of the west, yet you want to follow Venezuela? Maybe you should move to the Amazon and live with a tribe there in a subsistence economy. Don't think it would be long before they realise you're useless and cook you up and eat you.
Sep 09th, 2015 - 05:21 pm - Link - Report abuse 0@5 brASSHOLE (Cuzão)
Sep 09th, 2015 - 09:52 pm - Link - Report abuse 0Ridiculous radical rant from a runt.
Brazzo, you are a schizo......when are you going to realize that your dreams will never come true ?
@10 Tik-Tok
Trying to explain anything to the runt is quite useless...it is all beyond his comprehension. Instead of him polluting the Amazon, would be better off for everyone if he got a one-way ticket to VZ, where there are no Dollars, and far less toilet paper. He'd probably sniff and lick his bum like a dog.
Jack Bauer, give your ass to another. I do not like viado like you.
Sep 09th, 2015 - 10:39 pm - Link - Report abuse 0Brasshole, look what PT has achieved, credit downgrade just announced, watch investors pull out of Brazil and the currency to dive. Go lick some arse in Venezuela with Maduro and Lula
Sep 10th, 2015 - 12:04 am - Link - Report abuse 0I also found excellent news this downgrade. Speculation only generates inflation.
Sep 10th, 2015 - 12:16 am - Link - Report abuse 0With respect to sovereign debt, Brazil should withdraw its reserves totaling 550 billion dollars (Treasuries, ADR's and IMF) to redeem the bonds issued in US dollars (200 billion) and the rest to buy gold and depositing it in the Central Bank as collateral.
Collateral against what?
Sep 10th, 2015 - 12:45 am - Link - Report abuse 0Autarky?
I do not know how to say in English lastro monetário.
Sep 10th, 2015 - 12:48 am - Link - Report abuse 0Brasileiro
Sep 10th, 2015 - 02:20 am - Link - Report abuse 0I know you aren't here to learn. Which is your right. If you think Brazil already has all the answers and does everything right, then why does it have these problems?
Why is it in recession?
Why is the government broke and running a huge deficit?
Why is government debt growing?
Why is Brazil uncovering its biggest corruption scandal ever?
Why are unemployment and bankruptcies growing?
A rating downgrade is a reflection of what BRAZILIANS are doing to BRAZIL. It isn't punishment or being petty like you.
Your economy is in crisis and all you do is gloat about how you will make crises elsewhere.
You might find this downgrade excellent news but that is be aside you are too limited to realise the effects. Investment will flow OUT of Brazil now. I'm sure in your autarkic wet dreams this sounds perfect. Until you realise that this will cause your currency to drop even further. It means your government won't be able to fund infrastructure projects or its deficit as easily. Which means higher borrowing costs. Which means a bigger deficit.
This will deepen your recession. But according to you, recessions don't affect anyone in Brazil. Everyone is happy and laughing and just waiting for the west to collapse.
Your recession has JUST started. It is going to get a lot worse.
However I expect you to remain blithely ignorant of that for the next couple of years as Brazil's economy drops out of the top 10 largest. Russia is just about to. Seems that whole BRICS world domination plan isn't going according to plan.
Brazil downgraded to JUNK status. How is that good for Brazil?
Sep 10th, 2015 - 05:40 am - Link - Report abuse 0Worst recession for 25 years.
Real has dropped by 20% against the dollar.
Inflation at 30%.
Rampant corruption.
Infighting in the government on how to implement austerity. (Yes, austerity)
World recession on commodities.
None of this is good news for Brazil, sadly.
Why are the Brasiliero Gang pinning their hopes on a phrase 'BRIC' coined in 2001 by an economist working for Goldman Sachs? It was a paper predicting EMERGING markets. It was produced to advise about long term investment and suggested that Brazil, Russia, India and China could EMERGE to greater status in 2050. A lot has changed since then.
The only country of the original four still worth long term investment at reasonable risk is India. The rest are in the shit. It may change, of course, and a lot depends on confidence and INVESTMENT from outside the countries.
The Brasiliero Gang fail to understand that in order to EMERGE they need investment. When you have been downgraded to JUNK status it is very hard to attract the investment you need.
This JUNK status means money will be leaving Brazil (as pointed out by Skip) and the money your country will have to borrow becomes more expensive.
The idea that Brazil, or even South America, can operate independent from the rest of the world and without trading is a complete nonsense.
I will limit myself to one question at a time:
Sep 10th, 2015 - 09:46 am - Link - Report abuse 0Why is it in recession?
Until recently our growth was based on domestic consumption. But like any economic model that has lasted a long time ends up generating mismatch as inflation for example. So it was and still is necessary to change the model slowly and safely. And we're doing it.
In the last five years we have developed a powerful oil industry. Our agribusiness doubled in size. Our investments in energy, including renewable, almost tripled in size, our purchases of capital goods multiplied by four in the last five years.
So it was necessary to generate energy security, skilled labor and provide water resources to leverage investment in production.
However, in the middle of the course of these past five years the government has made strategic vision errors such as tax relieve many business segments such as anti-cyclical action in order to secure jobs. But the global crisis still lingers and we no longer practice as anti-cyclical actions, and we are trying to reverse that still exist.
continues...
Who the hell are you?
Sep 10th, 2015 - 09:59 am - Link - Report abuse 0@20 Brasileiro is a Brazilian Gang that meets to hate on the West. Everyone need a hobby.
Sep 10th, 2015 - 10:01 am - Link - Report abuse 0Yes but have they recruited someone new? Or is that cut and pasted from somewhere?
Sep 10th, 2015 - 10:21 am - Link - Report abuse 0Be due this one doesn't toe the line regarding the BRICS fallacy. ..our growth was based on domestic consumption. Is just code for easy credit. See back to my question on why bankruptcies are increasing-this is why.
following...
Sep 10th, 2015 - 10:29 am - Link - Report abuse 0With the re-election of Dilma Rousseff without a majority parliamentary base or disaggregated difficulties overcoming the economic mistakes made by the government the difficulties in approving laws to reverse the anti-cyclical practices have become almost impossible to be approved by sheer temper tantrum of opposition right. So we ran the agility to reverse the fiscal and political problems that caused the recession. However, in the medium term and with the return of investment in the oil industry we see a promising future for Brazil.
LMAO
Sep 10th, 2015 - 11:13 am - Link - Report abuse 0So Dilma can't rule!
And as usual, Brazil is the country of the future.
Seems the recent boom left no legacy. Thank God Australia has plenty to show from our boom.
No legacy? Do not make me laugh. Brazilian society today is much richer, educated and politicized than 13 years ago.
Sep 10th, 2015 - 11:25 am - Link - Report abuse 0The wealth that Brazil produces today in the space of a year is five times the wealth produced in 2002.
Walk the streets today and see the photos of 15 years ago. You will be amazed.
Everyone knew once they started fiddling with the budget surplus figures they were going to lose their rating. Sad day for Brazil, been a full circle, PT have managed to destroy everything positive that FHC brought economically to the country (which did so much good for the poor) and now in the name of the poor PT are screwing them really really hard. If violence was already bad, expect it to get worse! A lot of very disgruntled middle classers out there with lots of prestacoes to pay.
Sep 10th, 2015 - 04:23 pm - Link - Report abuse 0@12 brASSHOLE
Sep 10th, 2015 - 04:35 pm - Link - Report abuse 0Não entendi....não quer mais chupar pica ? o que quer então ? levar no rabo ? é, deve ser isso, já o Lula está comendo o seu há 12 anos.
@14 asshole
I also found excellent news this downgrade.......
To you, everything, as long as done by or caused by Dilma and Lullashole, is excellent news. You understand even less about Economy than Dilma and Mantega.
@19 asshole
I will limit myself to one question at a time: “Why is it in recession”?
Well, you've finally realized you cannot cope with more than one question at a time...and even then don't know the answer ; Allow me :
Until recently our growth was based on domestic consumption........
Correct, but growth based on credit, causing enormous indebtedness when things turned sour. Instead of using the 'good times' to build a solid base, the government just spent it's way into bankruptcy. And you are too stupid to realize it.
In the last five years we have developed a powerful oil industry.......
Sure, that's why PB is virtually bankrupt. But it will survive, even if the government has to stick its hand in your pocket - once again - to cover the loss.
So it was necessary to generate energy security, skilled labor and provide water resources to leverage investment in production......
Hilarious. So one must break PB in order to achieve energy security...great logic. Water resources ? today at the mercy of much needed heavy rainfall, because of the lack of significant investment over the last two decades. As to investment, you can say 'goodbye' to foreign capital, as well as to local.
However, in the middle of the course of these past five years the government has made strategic vision errors
Well, at last you admit the obvious. The incompetence of Dilma, Lulla and the PT, allied with widespread corruption, has finally taken its toll. I hope this situation bites you in the ass, asshole.
Wealth ? so you think the bolsa família' is wealth ?
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