Brazil will extend payroll tax exemptions to the country’s construction sector, Finance Minister Guido Mantega said on Tuesday, the latest in a flurry of tax breaks to local businesses aimed at supporting a lackluster economy.
The Brazilian economy grew much less than expected in the third quarter, surprising private economists and even the government.
Brazil’s biggest publicly listed homebuilders, including PDG Realty SA, Cyrela Brazil Realty SA and Gafisa SA, have struggled over the past year as demand cooled and projects overran budgets and timetables.
The Citizen, 06/13/2011
Former President Lula da Silva is often attributed with developing the increased economic relationship between Brazil and Africa – forming what is now known as the ‘south-south’ cooperation after visiting 27 of the 53 countries in 2003. It was this extensive trip that initiated the creation and expansion of a number of Brazilian consulates as well as other ties that were viewed as important.
According to the Financial Times, Brazilian commerce levels have reached US$25 billion in 2010 and there are now 500 Brazilian companies in operation in the continent (compared to 13 in 1995), many of whom see the region as not only an important export/investment destination but also as ways to use knowledge and expertise in fields such as hydro electricity, energy production and construction.
From a commercial perspective, the country is finding itself in increased competition with other nations with a strong desire to invest and boost trade links – particularly from China (that has double the level of commerce across the continent compared to Brazil); India; North America and Europe (although the latter two have slowed down their pace as a result of the global economic crisis).