Friday, 28 September 2012

Brazil is looking for more trade links to build a better economy

A man, clean shaven, with short straight dark brown swept back hair wearing a suit jacket, white shirt and blue tieThe Prime Minister of United Kingdom, David Cameron, went to Brazil on a trip to the America for several reasons like to be more known and to creates competitive economic. He got there also for a political approach to say the point of view of the UK on the US most popular TV show. He first stopped for his two days visit to Brazil, where he was waited by the Trade Minister of Brazil, Lord Green and by a 40-strong business delegation. He then joined the Brazil’s commercial capital Sao Poala (the most economic relevant city in the country) which was hold by the 40-strong business delegation. He also had a talk with president Dilma Rousseff during his time. M. Cameron was in Brazil to create good trade links and for economic reason, sine the country has one of the most emerging economic in the world at the moment. The Prime Minister believes that it is a good occasion to UK contractors to share the experiences gained with the 2012 London’s Olympics Games to create work in Rio. Therefore, if the Brazil creates good trade link with important country like United Kingdom, it will even more emerge from other and be an even more competitive country that has to offer more services.

Alexis Poulin

Wednesday, 19 September 2012

IPEA’s Economists: “Brazil’s property bubble will burst when interest rates rise” and “it’s all the government’s fault”

A study done by IPEA (Institute of Applied Economic Research), a Brazilian government agency says that there real evidence from the microeconomic and the macroeconomic point that there is a property bubble in Brazil. The property bubbly was created by an inflation of 165% for Rio de Janeiro and 135% for Sao Paulo, instead of the 25% estimated from 2008 to 2012. This too high inflation causes many dysfunctions in the economic system that will be soon departed through the whole economy of Brazil causing the bubbly burst. This is all because Brazilian government adapted an inflationary policy. It results to increase the cost of living, but this leads to a global interest rate at a record minimum level and this means that rates will inevitably increase, sooner or later. Then the research says that the true cost associated with the current tax will at that point appear leaving Brazil in an economic crisis. We could compare this financial crisis to the one that United Stated are in, but started in 2007-2008 due to too much credit for houses and apartment which results to an higher price of these. On the other hand, for the Brazilian Government it is a different situation than them because they don’t export as much as USA. Finally, once the property bubble will explodes it will leave the Government under hard circumstances. However we all know that they will still have the last word over the Brazilian population, leaving them with a fix for the problem they created by themselves because of a misjudgment of the budget of the nation.

Here is how they define their study:
“This article verifies the occurrence of a real estate bubble in the Brazilian economy. Overall, our results suggest the existence of a bubble in the real estate sector of the economy. The Austrian School of economics provides a solid explanation to this phenomenon, which are reinforced by statistical techniques, suggesting the Federal government, with equivocate fiscal and monetary policy, as the main responsible for the creation of this problem.”

Blog from; Posted September 18th

Alexis Poulin

Saturday, 15 September 2012

Basic information that most be known.

We ... has a team decided that our first post would not be really meaningful but still the most important. The general information is very important because it allows us to have a general overview of the country. We are considering that even more important in this case. Mostly because we are not specialist in the country we talk about here. Not being aware of what is going on economically,politically,militarily and in other important aspect; could be fatal in some circumstances, due to the background of the country.

-          Capital: Brasilia 2,606,885 populations

-          Country population: 196 million

-          Average age of the population: 62% under 29 years old
-       Life expectancy: 73 years old
-      Poverty headcount ration at national poverty line: 21,4%

-          Ethnicity: white 53,7%, mulatto (black & white)38,5%, black 6,2%

-          Official language: Portuguese

-          Religion: Roman catholic 73,6%, protestant 15,4%, none 7,4%

-          Currency: Brazil Reais (BRL)

-          GDP total:2,477 trillion

-          GDP per capita: 10,720

-          Land division: 26 states and 1 federal district

-          Largest city by population: Sao Paolo, Rio de Janeiro, Salvador, Fortaleza, Belo Horizonte, than the capital

-          Temperature: on average between 25oC and 40oC depending on the region

-          Climatic region: tropical rainforest, tropical wet and dry, tropical monsoon, hot semi arid, humid subtropical, subtropical high land