segunda-feira, 5 de junho de 2017

#THE BRAZILIAN ECONOMY REACTED WELL & BRAZIL SOLIDARIZES WITH VICTIMS AND REFUSES TERROR ATTACKS IN GREAT BRITAIN

#THE BRAZILIAN ECONOMY

REACTED WELL

BRAZIL SOLIDARIZES WITH

VICTIMS AND REFUSES TERROR

ATTACKS IN GREAT BRITAIN

SOURCE/LINK: http://istoe.com.br/a-economia-reage/

The Brazilian economy reacted well

RECORD Super-crop boosted performance of the agricultural sector, which had the best result in 20 years (Credit: AFP photo)
Bárbara Libório

The nightmare is over. After shrinking for eight consecutive quarters, GDP, in short, showed signs of life. On Thursday 1st, IBGE reported that the country grew 1% in the first quarter of 2017 compared to the fourth quarter of last year. Besides indicating the exit from the recession, the result brought an additional boost: the economy was able to resist the political crisis that settled in Brasilia in recent weeks. If, at first, Joesley Batista's denunciation signaled a new age of uncertainty, it did not take long for mistrust to be undone. After the shock, the stock market rose again, the dollar devalued and a handful of indicators showed that the recovery was more consistent than the defeatist thought. In one of the main demonstrations of chaos detachment, the Central Bank decided to follow the rate cut of the basic interest rate, the Selic, and reduce it by one point. The initial fear gave way to a common sentiment: it is necessary to shield the economic agenda from the collapses of Brazilian politics, considering that they will probably not be solved in the short term.
CHALLENGE Retail sales were favored by withdrawals from the FGTS inactive accounts, which injected R $ 2.65 billion into the sector (Credit: Shutterstock)
In recent months, the economic news has given the financial market too little to complain about. Inflation has had steady declines and is expected to reach the end of the year below 4%. The basic interest rate, the Selic, is expected to fall to one digit, 8.5%. Even unemployment, the worst legacy of the economic crisis generated by previous governments, began to show signs of cooling: in April, the country contracted again and opened almost 60,000 jobs. For reasons such as these, consumer and business confidence levels returned to the same levels as at the end of 2014, when the economic crisis had not yet erupted.

Detachment

It is a consensus among business people that the Brazilian economy is more robust. "External accounts are balanced, we have a significant reserve level. This prevents short-term hysteria from becoming a crisis, "says Carlos Langoni, former president of the Central Bank.
Now, the 1% growth in the first quarter also encourages the market since, technically, the result takes Brazil out of the recession. The highlight was agriculture, which had its best result in 20 years, driven by a record harvest of 233.1 million tons. For the next results to follow the same path, it is important that other sectors also improve their performance.

1 of 6 "Unlike the other crises, the market did not stop this time. The economy is taking off from politics "Roberto Cortes, President of Man in Latin America
Photo: Thiago Bernardes / FRAME

2 of 6 "There was a first moment of fear and caution, but in 72 hours it had already been overcome" Marcos Gouvêa de Souza, general director of the GS & Gouvêa de Souza Group
Photo: Disclosure

3 of 6 "The potential of the Brazilian consumer market is a great growth vector. Let's double the number of employees "Peter Fernandez, CEO of 99 Taxi
Photo: Disclosure

4 of 6 "The reforms are evolving, but they have to happen because they are fundamental" Carlos Zarlenga, President of GM Mercosul
Photo: Frederic Jean

5 of 6 "Reforms are evolving, but they have to happen because they are fundamental" Carlos Zarlenga, president of GM Mercosul
Photo: Disclosure

6 of 6 "Momentary instability does not affect planning" Ruben Fernandes, president of Anglo American
Photo: Disclosure
This is the case of the industry, which already grew 0.9% in the first three months of the year. The services sector, which accounts for more than 70% of GDP, has varied and pulled the total result down. Among the companies, the investment plan for 2017 has already begun. According to a survey carried out with 45 companies by Valor Econômico newspaper, the contributions expected for this year totaled R $ 117.5 billion. For Antonio Carlos Pipponzi, chairman of Raia Drogasil's board, the scenario is normal and optimism about economic recovery remains the same. President of the Institute for Retail Development (IDV), he expects the sector to grow from 1.5% to 2.5% in May and June, driven by the withdrawal of inactive FGTS accounts.
AVANÇO Indústria showed a slight recovery and grew 0.9% in the first quarter of the year (Crédito: Divulgação)

Among businessmen, economists and workers, the sentiment is the same: the economy will take off, even if, for that, it needs to leave politics behind. Faced with the possibility of a second change of command in the government in just one year, entrepreneurs and investors lived the beginning of déjà-vu. But instead of the abatement came the reaction. "There was a first cautious moment