Arab Today, arab today lack of competitiveness hobbling brazil\s growth
Last Updated : GMT 15:29:56
Arab Today, arab today
Arab Today, arab today

Lack of competitiveness hobbling Brazil\'s growth

Arab Today, arab today

Arab Today, arab today Lack of competitiveness hobbling Brazil\'s growth

Brazilia - AFP

Lack of competitiveness is the main threat to Brazil\'s economic growth, experts say, after the finance minister announced a downward revision of the South American giant\'s growth forecast. Brazil is the world\'s sixth-largest economy and the region\'s powerhouse. Still, it has recently been struggling to stave off a recession and is therefore seen as susceptible to economic woes in Europe. On Tuesday, Finance Minister Guido Mantega told the Senate the official growth forecast was being revised downward to 4 percent from 4.5 percent. Analysts saw that as a sure sign that government efforts to curb fallout from the eurozone crisis by boosting consumption potentially will not do the trick. Zeina Latif, an economist at the University of Sao Paulo, noted that \"consumption is being met by imports and no longer by (domestic) production.\" Therefore, she said, the government\'s new stimulus measures such as lower taxes on car makers and easier credits for car buyers will not be enough. \"You need to tackle structural problems such as cost of transport, energy or labor,\" Latif added. \"Interest rates will not resolve this and the trouble is that if industry is fragile, this will affect other sectors\" due to lower investments.\" Despite the sobering analysis, the government remains determined to press on with its strategy of cutting taxes and pressing private banks into lowering their interest rates in an effort to spur consumption in this country of 192 million people that posted a whopping 7.5 percent growth in 2010. President Dilma Rousseff, for one, appears confident Brazil is ready to tackle any trouble from across the Atlantic. \"I can assure you that we are 100 percent, 200 percent or even 300 percent prepared,\" Rousseff said in a speech Monday in the southern state of Santa Catarina. \"We will resist the crisis by creating jobs, by investing in infrastructure and social activities,\" she added. Economists, meanwhile, warn that failure to properly prepare for ramifications of the eurozone crisis could fuel inflation. Domestic inflation in Brazil reached 6.5 percent in 2011, the upper limit of the official target, but has tapered off in the first months of this year, meaning it could drop to or near the official target of 4.5 percent by end-2012. \"If Brazil does not register strong growth and cannot count on high prices of commodities, it will not be as attractive for foreign investors,\" Juan Jensen of the Sao Paolo consultancy warned in an interview with AFP. \"Even if the economy follows a growth trajectory, it is a rather weak growth and main symptom is lower industrial production,\" he said. In the first quarter of this year, industrial production in this Latin American powerhouse fell three percent compared with the same period of last year. \"In industry, costs are higher ... and there is not enough productivity to compensate for this rise,\" Jensen added. Reeling from higher imports and the loss of competitiveness caused by the strong real over the past few years, industry last year grew an anemic 0.3 percent, sharply down from 10.5 percent in 2010.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today lack of competitiveness hobbling brazil\s growth Arab Today, arab today lack of competitiveness hobbling brazil\s growth

 



Arab Today, arab today
Arab Today, arab today Saudis await visitors but will they come?

GMT 11:54 2017 Thursday ,23 February

Saudis await visitors but will they come?
Arab Today, arab today Sarah Belamesh designs antiques of "ceramic"

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"
Arab Today, arab today Blind sheikh buried in Egypt

GMT 06:32 2017 Thursday ,23 February

Blind sheikh buried in Egypt
Arab Today, arab today Media host Mona Iraqi stresses her show's success

GMT 15:32 2017 Wednesday ,22 February

Media host Mona Iraqi stresses her show's success

GMT 16:32 2017 Wednesday ,22 February

US Treasury chief tells IMF to monitor currencies

GMT 16:08 2017 Wednesday ,22 February

Qatari banks merger to rebalance financial sector

GMT 05:57 2017 Wednesday ,22 February

Britain risks clash with EU over RBS bailout

GMT 05:26 2017 Wednesday ,22 February

Singapore carbon tax would hit refiners, help renewables

GMT 05:18 2017 Wednesday ,22 February

Chinese PM: US should avoid ‘trade war,’

GMT 20:59 2017 Tuesday ,21 February

Economy good, but homes in German cities overpriced

GMT 05:29 2017 Tuesday ,21 February

Sovereign funds pulled $38bn from markets in 2016
View News in Arabic - Business: نفط وبتروكيماويات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today To hold social dialogue over secondary school

GMT 07:43 2017 Wednesday ,22 February

To hold social dialogue over secondary school
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Salma Rashid happy for 'A Whisper of Love'

GMT 05:19 2017 Tuesday ,21 February

Salma Rashid happy for 'A Whisper of Love'
Arab Today, arab today Milan laughs while Rome cries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 06:41 2017 Monday ,20 February

Janat pleased for issuing 'Good Morning'

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 14:29 2017 Monday ,20 February

Prepares to present her new collection

GMT 15:53 2017 Tuesday ,21 February

Small ponds have outsized impact

GMT 23:29 2017 Thursday ,16 February

Home built on sand castles-style costs $8m

GMT 07:51 2017 Wednesday ,22 February

Mom's immune system accepts babies

GMT 17:46 2017 Saturday ,18 February

Tourist guide reveals methods of tourist attractions

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 19:10 2017 Friday ,17 February

Hats, scarves add beauty to women
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday