Low Dollar and High Interests Reduces Brazil's GDP to 2.5%
Written by Keite Camacho
Wednesday, 07 December 2005
Brazil's National Industrial Confederation (CNI) has just announced a reduction in its estimate for GDP growth this year from 3.5% to 2.5%.
"Throughout the year the strength of the economy has been weakening. We are about to close out 2005 with less growth than we had last year. Growth will be around 2.5%," explained Paulo Mol, a CNI economist.
The CNI also announced downward revisions of its estimates for the industrial sector as a whole (4.4% to 3%) and the manufacturing sector (4% to 2%).
Mol declared that a nasty combination of high interest rates and the valorization of the local currency (the real) against the dollar had a negative influence over the last 12 months.
"This works against investments," he said, adding that something has to change so 2006 will be better.
The dollar is strong against ALL major currencies.
IT IS THE REAIS THAT IS STRONG AGAINST ALL THE WORLD CURRENCIES, simply due to your stupid high interest rates. Therefore short term investors (locals and foreigners) and speculators are profiting....from your stupid monetary policies, by investing at high rates with no risk !!!!!!
No doubt that time will come in a not too distant future, they will leave your currency as fast as they bought it.
You will then complain again but for the exact opposite reasons.
You did it for the last.....50 years ! No reason to change, so far.
Even, from 1998 to 2002, 150 billions Reais was money laundered outside of your country by brazilians themselves. Despite being illegal, very few went to jail. Therefore, now you say, your currency strength works against investments and when your currency was weak you said exactly the same. Quite contradictory, as usual, from brazilian government leaders.
Reality is that your problems are the stupid interest rates you give to short term investors or speculators. But Meireles and Lula both agree of the actual selic rate policy.
Up to you to decide, but so far you do wrong things and then complain that the reasons are from outside, not inside.
You have the same attitude for Agriculture, Industrial goods and services with the WTO.
could not agrre more and will add tha the internal debt as well as the almost total collapse of infrastruture will eventually leave investors stupid enough to buy into the brazilizn economic miracle holding the bag.again.
Brazil received a huge boost in its international image with its selection as the host of the 2016 Olympics, but it was really just the cherry on top of the overall recognition of the country's ascension to the ranks of one of the world's most important countries. Now, as it finally takes its place on the world scene, there has been a great deal of concern about what kind of image Brazil hopes to project, now that the world is really paying attention.
The only good thing to say about the visit to Brazil of Iran's president, Mahmoud Ahmadinejad, on Monday November 23, is that it was mercifully short and lasted less than 24 hours. Ahmadinejad had his picture taken being hugged by president Luiz Inácio Lula da Silva who gave him a warm welcome and said Iran had every right to develop nuclear energy for peaceful purposes.
The small, coastal town of Condé is located just a twenty minute's drive from João Pessoa, the capital of Paraíba. The Northeast of Brazil has historically been a place of encounter and mixing between peoples. For millenia groups of indigenous people fished, farmed, migrated and sometimes fought along this large, fertile area.
The Brazilian diplo-MÁ-cia (bad diplomacy) carries on its accelerated course towards the non-acknowledgment of human rights, although sometimes it takes pleasure in saying that it does precisely the opposite. The visit of Iran's president, Mahmoud Ahmadinejad, is another example of a diplomatic omission that verges on hypocrisy.
On July 4, 2006, representatives of Argentina, Brazil, Paraguay and Uruguay met in Caracas to sign the protocol for the entrance of Venezuela into the Southern Common Market (Mercosur). After two and a half years, the protocol was approved by the legislative bodies of Argentina and Uruguay, and as of now it may be only days away from being ratified by the continent's economic megalith, Brazil.
Some sectors of the fight against AIDS have suggested that Thabo Mbeki, the former president of South Africa, committed genocide through his absence from the fight against the illness in his country throughout his two terms.
One hundred and eleven years after Brazil abolished slavery, the number of workers deprived of their freedom is still huge. They raise cattle, produce charcoal, sugar cane or timber. Some of them, most undocumented Bolivians, work in basements of small apparel factories in São Paulo and other metropolis.
On November 7, 2009 a few friends and I had an opportunity to take a look inside a Brazilian jail outside the city of Rio de Janeiro. We were able to take some amateur footage of our experience on video (see link below). It's no surprise, of course, that the typical Brazilian jail lacks some of the functionality of those in North America or Europe, but our experience that day was quite shocking.
Depletion of the Amazon Rainforest is not a new concern facing environmentalists, biologists, ecologists, and a growing number of the Amazonian indigenous peoples. For decades they have feared for the fate of the world's most biologically diverse and species-rich hothouse.
Geisy Arruda made history this week in Brazil, but for all the wrong reasons. What began as a poorly planned fashion statement has become a worldwide tale. Geisy decided to wear a pink mini-dress to her private college in São Paulo state, and after that, all hell broke loose.
Subscribe to this comment's feed
Brazil received a huge boost in its international image with its selection as the host of the 2016 Olympics, but it was really just the cherry on top of the overall recognition of the country's ascension to the ranks of one of the world's most important countries. Now, as it finally takes its place on the world scene, there has been a great deal of concern about what kind of image Brazil hopes to project, now that the world is really paying attention. 
The only good thing to say about the visit to Brazil of Iran's president, Mahmoud Ahmadinejad, on Monday November 23, is that it was mercifully short and lasted less than 24 hours. Ahmadinejad had his picture taken being hugged by president Luiz Inácio Lula da Silva who gave him a warm welcome and said Iran had every right to develop nuclear energy for peaceful purposes. 
The small, coastal town of Condé is located just a twenty minute's drive from João Pessoa, the capital of Paraíba. The Northeast of Brazil has historically been a place of encounter and mixing between peoples. For millenia groups of indigenous people fished, farmed, migrated and sometimes fought along this large, fertile area. 
The Brazilian diplo-MÁ-cia (bad diplomacy) carries on its accelerated course towards the non-acknowledgment of human rights, although sometimes it takes pleasure in saying that it does precisely the opposite. The visit of Iran's president, Mahmoud Ahmadinejad, is another example of a diplomatic omission that verges on hypocrisy. 
On July 4, 2006, representatives of Argentina, Brazil, Paraguay and Uruguay met in Caracas to sign the protocol for the entrance of Venezuela into the Southern Common Market (Mercosur). After two and a half years, the protocol was approved by the legislative bodies of Argentina and Uruguay, and as of now it may be only days away from being ratified by the continent's economic megalith, Brazil. 
Some sectors of the fight against AIDS have suggested that Thabo Mbeki, the former president of South Africa, committed genocide through his absence from the fight against the illness in his country throughout his two terms. 
One hundred and eleven years after Brazil abolished slavery, the number of workers deprived of their freedom is still huge. They raise cattle, produce charcoal, sugar cane or timber. Some of them, most undocumented Bolivians, work in basements of small apparel factories in São Paulo and other metropolis. 
On November 7, 2009 a few friends and I had an opportunity to take a look inside a Brazilian jail outside the city of Rio de Janeiro. We were able to take some amateur footage of our experience on video (see link below). It's no surprise, of course, that the typical Brazilian jail lacks some of the functionality of those in North America or Europe, but our experience that day was quite shocking. 
Depletion of the Amazon Rainforest is not a new concern facing environmentalists, biologists, ecologists, and a growing number of the Amazonian indigenous peoples. For decades they have feared for the fate of the world's most biologically diverse and species-rich hothouse. 
Geisy Arruda made history this week in Brazil, but for all the wrong reasons. What began as a poorly planned fashion statement has become a worldwide tale. Geisy decided to wear a pink mini-dress to her private college in São Paulo state, and after that, all hell broke loose.
THE DOLLAR IS STRONG, NOT WEAK !!!!
The dollar is strong against ALL major currencies.
IT IS THE REAIS THAT IS STRONG AGAINST ALL THE WORLD CURRENCIES, simply due to your stupid high interest rates. Therefore short term investors (locals and foreigners) and speculators are profiting....from your stupid monetary policies, by investing at high rates with no risk !!!!!!
No doubt that time will come in a not too distant future, they will leave your currency as fast as they bought it.
You will then complain again but for the exact opposite reasons.
You did it for the last.....50 years !
No reason to change, so far.
Even, from 1998 to 2002, 150 billions Reais was money laundered outside of your country by brazilians themselves.
Despite being illegal, very few went to jail.
Therefore, now you say, your currency strength works against investments and when your currency was weak you said exactly the same.
Quite contradictory, as usual, from brazilian government leaders.
Reality is that your problems are the stupid interest rates you give to short term investors or speculators. But Meireles and Lula both agree of the actual selic rate policy.
Up to you to decide, but so far you do wrong things and then complain that the reasons are from outside, not inside.
You have the same attitude for Agriculture, Industrial goods and services with the WTO.