“Brazil is losing international competitiveness,” John Welch, chief strategist for CIBC World Markets, the investment- banking arm of Canada’s fifth-largest bank, said by phone from New York. “They’re blaming all the problems on the exchange rate, but have ignored structural reforms.”
“Brazil is losing its industry, the situation is the worst in years,” said Robson Andrade, head of the Brasilia-based National Industry Confederation. “We’re losing competitiveness because of the strong currency and the Brazil cost*,” he said in a phone interview, referring to obstacles to productivity in Brazil such as aging infrastructure, a tax burden of about 36 percent of GDP and a shortage of skilled labor.
* Called "Custo Brasil" in Brazilian Portuguese
http://www.bloomberg.com/news/2012-03-06/brazil-s-gdp-growth-of-2-7-last-year-underperformed-bric-peers-economy.html
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