Cost of Living in Brazil - Page 20

JMBroad · #**191** 24-07-2008, 02:32 PM

Quote:

Originally Posted by RalphJ

A Booming Brazil? Just Another Myth Created by the Press

"Since 2003, the export-led economy produced very strong results. For the first time in its history, Brazil holds slightly less than 200 billion dollars in its foreign reserves far surpassing its total external debt (2). Brazil is a net creditor (3).

The Lula government made early repayments to both the IMF and to the Paris Club. In 2007, Brazil had 64 Initial Public Offerings (IPOs) raising US$ 42.8 billion with much of inflow originating from abroad. Since 2002, the São Paulo stock exchange, Bovespa, grew by 1,250 percentage points (4). Recently, Bovespa surpassed the 70,000 benchmark for the first time ever. Even CNN's news ticker mentioned this historic feat.

For the past five years the trade surplus has comfortably exceeded US$ 35 billion helping to push the current account from deficit to surplus. The risk of default on Brazil's external debt has dropped to historically low levels (5). Last year, international investors sent Brazil over US$ 35 billion in foreign investment.

The international debt agencies, of Fitch and Standard & Poor's, raised Brazil to the safest "investment grade" level securing it a new reputation as a low risk place for international investors (6). Petrobras, Vale do Rio Doce, and Embraer are just three Brazilian multinationals active in the global economy of today. "

Good find Ralphj, overall a great article and an interesting view on the Economy of Brazil - not surprising really that it hasn't filtered down to the average citizen unfortunately, however doesn't deny that there is a lot of growth in many sectors - lets hope his predictions are wrong and his hopes are right.

debzor · #**192** 24-07-2008, 02:37 PM

Quote:

Originally Posted by debzor

Probably flight discussions belong on the the flight thread, but back to cost of living - Ralph and I exchanged notes on the cost of alcool here a few weeks ago when we commented that he was paying R$1.80 and I just R$1.40.

Now I am paying R$1.80 a litre - anyone else noticed an increase?

I am told this is because we are between harvests of sugar cane???

The best I can now find alcool at is R$1.79 a litre and the worst is R$1.90.

Just 3 months ago it was R$1.35 - R$1.45!

RalphJ · #**193** 24-07-2008, 02:56 PM

Quote:

Originally Posted by debzor

The best I can now find alcool at is R$1.79 a litre and the worst is R$1.90.

Just 3 months ago it was R$1.35 - R$1.45!

I was thinking about you yesterday Deb while filling up. The station I was at, and the majority here in Aracaju, are selling alcool @ 189.9 per litre!!

I actually asked the attendant if he knew why it is so expensive here in Sergipe and he said because taxes and stated that here in Sergipe they pay 17% state taxes on combustivel.

RalphJ · #**194** 24-07-2008, 02:59 PM

Quote:

Originally Posted by JMBroad

"Since 2003, the export-led economy produced very strong results. For the first time in its history, Brazil holds slightly less than 200 billion dollars in its foreign reserves far surpassing its total external debt (2). Brazil is a net creditor (3).

The Lula government made early repayments to both the IMF and to the Paris Club. In 2007, Brazil had 64 Initial Public Offerings (IPOs) raising US$ 42.8 billion with much of inflow originating from abroad. Since 2002, the São Paulo stock exchange, Bovespa, grew by 1,250 percentage points (4). Recently, Bovespa surpassed the 70,000 benchmark for the first time ever. Even CNN's news ticker mentioned this historic feat.

For the past five years the trade surplus has comfortably exceeded US$ 35 billion helping to push the current account from deficit to surplus. The risk of default on Brazil's external debt has dropped to historically low levels (5). Last year, international investors sent Brazil over US$ 35 billion in foreign investment.

The international debt agencies, of Fitch and Standard & Poor's, raised Brazil to the safest "investment grade" level securing it a new reputation as a low risk place for international investors (6). Petrobras, Vale do Rio Doce, and Embraer are just three Brazilian multinationals active in the global economy of today. "

Good find Ralphj, overall a great article and an interesting view on the Economy of Brazil - not surprising really that it hasn't filtered down to the average citizen unfortunately, however doesn't deny that there is a lot of growth in many sectors - lets hope his predictions are wrong and his hopes are right.

The interest rates are of worry to me JM and are back on the rise along with international investors just coming in for a "quick hit" in the markets and then fleeing for "safer" investments, which is what he basically stated is responsible for a lot of the appeared growth.

robh · #**195** 24-07-2008, 03:46 PM

Quote:

Originally Posted by RalphJ

The interest rates are of worry to me JM and are back on the rise along with international investors just coming in for a "quick hit" in the markets and then fleeing for "safer" investments, which is what he basically stated is responsible for a lot of the appeared growth.

If external money caused the majority of growth in Brazil then growth would be tiny. There just isn't enough money floating around that can be invested in emerging markets to massively affect the growth of a huge country & economy like Brazil, it's economy is the tenth largest in the world after all.

JMBroad · #**196** 24-07-2008, 06:23 PM

Quote:

Originally Posted by RalphJ

I was thinking about you yesterday Deb while filling up. The station I was at, and the majority here in Aracaju, are selling alcool @ 189.9 per litre!!

I actually asked the attendant if he knew why it is so expensive here in Sergipe and he said because taxes and stated that here in Sergipe they pay 17% state taxes on combustivel.

You mean 1.89 per litre surely?

robh · #**197** 24-07-2008, 06:57 PM

Quote:

Originally Posted by JMBroad

You mean 1.89 per litre surely?

He means centavos.

RalphJ · #**198** 25-07-2008, 12:29 AM

Quote:

Originally Posted by JMBroad

You mean 1.89 per litre surely?

LOL...yeah, 1.89, or 1 real and 89 centavos. My bad...typo!

RalphJ · #**199** 25-07-2008, 01:49 AM

Quote:

Originally Posted by robh

If external money caused the majority of growth in Brazil then growth would be tiny. There just isn't enough money floating around that can be invested in emerging markets to massively affect the growth of a huge country & economy like Brazil, it's economy is the tenth largest in the world after all.

The United Nations Conference on Trade and Development (UNCTAD) chief economist Heiner Flassbeck warns Brazil that it is a victim of "international casino". The financial markets are making billions in the short-term by taking loans in Japan, with almost no interest, and placing it in Brazil's financial markets. They are making billions of this process as Brazil rewards them with the highest interest rates in the world (40).

So it is not surprising that Brazil's financial market has grown astronomically. But when US interest rates begin to tick-up again foreign investors will return their short-term fortunes to safer US securities. Brazil continues to be a place where investors make immediate profits and then flee towards safer investments. Unfortunately, there continues to be minimal investment in actual long-term production in the Brazilian economy that could generate new employment, transfer technology and usher internal development.

debzor · #**200** 25-07-2008, 03:53 AM

Which would be best for Brazil? Boom & bust, or slow steady sustainable growth?

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