February 19, 2014
Tim Ridout – The German Marshall Fund of the United States, 2/18/2014
In January, Brazilian President Dilma Rousseff attended the World Economic Forum in Davos for the first time in her three-year presidency. The foreign and trade policy platform of her Workers’ Party (PT) has been premised on a declining West, a transformed international order favoring emerging economies, and skepticism of free trade and open markets. But Rousseff is feeling intense pressure from her people to deliver better government services and economic prospects, as evidenced by massive street protests last June.
Rousseff’s visit to Davos came as the EU and Mercosur prepare toexchange proposals in newly revived free trade negotiations. She is also heading to Brussels on February 24 for a summit with EU leaders, where they are expected to discuss the negotiations and to sign a bilateral air travel pact that will increase passenger volumes between Brazil and Europe.
After a spate of economic growth that peaked in 2010 at 7.5 percent, Brazil’s economy slowed to 2.7 percent in 2011 and 1 percent in 2012. The growth rate for 2013 is expected to be about 2.5 percent. These disappointing numbers can be attributed partly to the drop in global commodity prices, but also to Brazil’s protectionist policies, poor infrastructure, unwieldy bureaucratic red tape, and its statist approach to investment. The Brazilian economy has not proven nimble enough to adjust to changing global realities, especially as investment flows back to the United States. Rousseff may have had little choice but to reassure business leaders at Davos that Brazil is committed to fiscal responsibility, openness to investment, combating inflation, and maintaining a floating currency.
January 24, 2014
Brazilian President Dilma Rousseff defended her administration’s management of a struggling economy on Friday though stopped short of offering concrete steps to calm investor nerves in the midst of an emerging market sell-off.
In what aides described as a major speech designed to regain foreign investors’ trust at the World Economic Forum in Davos, Switzerland, Rousseff reiterated a commitment to balanced public finances and inflation targeting amid mounting investor criticism of her administration.
“I want to emphasize that we will not be weak on inflation,” Rousseff said. “On the other hand, fiscal responsibility is a basic principle of our vision for economic and social development.”
January 24, 2014
Matt Clinch – CNBC, 1/24/2014
It’s the perfect time for investors to lead the charge back into emerging market Brazil, according to the country’s finance minister, who told CNBC that China growth fears have dragged stock prices down to very attractive levels.
Guido Mantega, Brazil’s finance minister, said the county’s stock market has become strongly dependent on China, with its heavy link to commodities. On Thursday, fresh data showed China’s manufacturing activity contracted for the first time in six months in January. Commodities producers drove the country’s Bovespa stock index down following the news.
“Over the last few weeks we’ve heard not very good news on growth rate for China. China has been giving ambivalent signals. So when they give signals like the one they gave yesterday with PMI that dropped a little, our stock market loses some value as a result,” he told CNBC at the World Economic Forum in Davos.
January 23, 2014
Brazilian Finance Minister Guido Mantega said on Thursday that a recent slowdown in price increases in January shows his government is committed to keep inflation under control.
Speaking at a webstreamed press conference from Davos, Switzerland, Mantega said the government has not yet decided on its budget fiscal goal for 2014. Investors are keeping a close eye on the government finances that have quickly deteriorated over the last two years.
January 21, 2014
Anthony Boadle – Reuters, 1/20/2014
Brazil’s leftist President Dilma Rousseff will try to convince the world’s business elite in Davos this week that her country is still a good investment despite three years of mediocre growth.
The one-time Marxist guerrilla has decided to reach out to the rich and powerful for the first time at the annual World Economic Forum in the Swiss ski resort of Davos to reassure them she is business-friendly and not fiscally profligate.
That is a big turnaround for a leader with a reputation for heavy-handed policies that have squeezed profits of some companies and hurt share prices. Dispelling skepticism about Brazil’s future will be an uphill task as Rousseff plans to seek re-election in October.
June 17, 2013
Brad Haynes – Reuters, 06/17/2013
For soccer fans flocking to Confederations Cup matches in Brazil’s tropical northeast next week, getting tickets to the stadium should be simple – but two in three will not find accommodations in the host city Recife.
Officials are sending visitors as far as 120 kilometers (75 miles) inland to spend the night, a detour on par with staying in Philadelphia for a New York Knicks game.
The tournament starting Saturday, a dress rehearsal for the 2014 World Cup, will lay bare for visitors what may surprise many: despite gorgeous beaches, a tempting climate and legendary hospitality, Brazil’s tourism industry pales next to its neighbors.
January 24, 2013
Guillermo Parra-Bernal – Reuters, 01/24/2013
Brazil’s central bank is committed to bringing down inflation, its president said, as he defended the government against criticism it had abandoned cornerstones of its economic policy.
Policymakers are not ruling out the use of traditional monetary tools to contain rising consumer prices, central bank President Alexandre Tombini told an audience at the World Economic Forum in Davos, Switzerland late on Wednesday.
Tombini said the central bank is committed to bringing inflation down to 4.5 percent this year. In the 12 months to mid-January, it accelerated to 6.02 percent from 5.78 percent one month before, putting it near the top of the bank’s target range of 4.5 percent plus or minus 2 percentage points.
April 19, 2012
Fox News Latino/AP, 04/19/2012
Asia is rapidly displacing the United States as the Western hemisphere’s top trading partner, pumping investments into Latin America and fueling the region’s growing middle class.
Asian investors flush with hundreds of billions of dollars in cash now see Latin America as a top business opportunity, and they’re flooding into manufacturing, construction and other industries, particularly in up-and-coming countries such as Brazil, Peru and Mexico. That’s transforming the lucrative relationship that was based primarily on exporting raw materials to Asia, an arrangement that frustrated governments eager to stimulate their own manufacturing.
Government and business officials meeting this week at the World Economic Forum in Puerto Vallarta, Mexico said the investment surge means Asia is poised to overtake the United States and the European Union as Latin America’s top trading partner over the next decade. Asian representatives have been an unmistakable presence at the forum, with South Korean, Chinese and Japanese investors making the rounds at this seaside city’s gleaming white convention hall.