US Recession Won’t Reach Copacabana Beach, Says Brazilian Minister

    Brazilian Finance Minister Guido Mantega

    Brazilian Finance Minister Guido Mantega Thanks to a high global demand for agricultural products, ethanol and iron ore and a booming domestic market, the Brazilian economy grew more than 5% in 2007, Brazil's Finance Minister Guido Mantega said Friday, March 8, during a press conference.

    President Luiz InΓ‘cio Lula da Silva administration reported expansion of 5.7% in the third quarter of 2007, largely because of big gains in the agricultural and industrial sectors. Brazil's IBGE Census Bureau is scheduled to release GDP figures for 2007 next week but Mantega said GDP growth could be estimated between 5.2% and 5.3%.

    The Finance minister said that the target for 2008 was 5%. Brazil in 2006 expanded 3.7%. "We already know that it will be more than 5%" he indicated at a meeting of the Institute of International Finance in Rio de Janeiro.

    Mantega said the country's industrial output is expected to grow more than the 6% posted in 2007, given the country's increased production of capital goods and rising imports of equipment and machinery.

    A domestic spending boom has been fed by higher salaries, easier credit and falling interest rates. Brazil's benchmark Selic interest rate now stands at 11.25%, down from a high of 19.75% in mid-2005. Inflation remains in the range of 4.5% to 5.5%.

    Mantega was optimistic about the future and said Brazil is well-prepared if the US economy goes into recession. "The subprime crisis has not reached Copacabana beach yet," he told the meeting at a hotel near Rio's famous beach.

    Treasury Secretary Arno Augustin said that Brazil's strong fiscal performance has been supporting the country's economic fundamentals even as international markets deteriorate.

    "There is a strong declining tendency in debt to GDP ratios, which has been confirmed even during the current period of international turbulence," Augustin said during a phone conference with investors.

    Brazil has a history of frequent boom-bust economic cycles, but many experts believe those trends have been smoothed with orthodox monetary police implemented by the Lula administration.

    The Brazilian central bank, relatively autonomous from political influence, has been under the wheel of Henrique Meirelles former Bank of Boston CEO.

    Mercopress

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    • Show Comments (17)

    • the anti ch.c

      Ch C should be felt sorry for…
      He’s just and idiotic loser who has nothing better to do with his time but to point every negative about Brazil. The reason he has nothing better to do is because he lives in one of the most boring countries in the world…sure its safe with lots of money but INCREDIBLY boring.

      It really is comical how he can find something negative to say about EVERY article ever posted about Brazil…must be some life to be filled with hate.

      I still think he was dumped by some Brasileira and has woman issues.

      The Swiss for the most part have about as much passion as a rock for anything other than money…

    • Simpleton

      Duo o die
      ToeToe – As our travels have been so far quite limited I will have to grant what you and the Economist say as fact. It may exist someplaces but so far, I just can’t imagine there being suicidal tendancies in Brazil whatsoever (lest it be those that came from the exterior and just couldn’t keep themselves from risking coming back like ourselves).

      After the heavy rains this spring many beaches were much in turmoil and most of costa verde brownish out for several km. Dono whether it was something in the water, the mosquitoes, something we were exposed to upon return, the ardourous journey back home, age catching up to us, ?, but the last week has been spent trying to recover without medical aid. Dengue stuck another youngster close to our hearts. There is always a price to pay for what one sees as paradise, a little pain for what one can never forsake as being ones home.

    • toto

      Re: “Ch C. must be salivating from his lanlocked country” ??????
      May be not so, because in reality you have 5000 kms of UNCLEANED AND DIRTY BEACHES !!!
      [b]
      This is false. Some beaches are polluted but not 5000 Kms.[/b]

      On top of that, there are tens and tens of countries with more beautiful beaches than Brazil !

      [b]This is subjective, isn’t it? I’ve been to many beaches in the world, haven’t found anything more beautiful than the Jericoacara, but that is my opinion.[/b]

      Regarding the numbers that you mention about the tourism industry in your country, they must probably be true. However you have no beaches that is the point made, you like it or not. Switzerland is one of the richest countries in the world but can’t have it all. Despite all the difference in wealth between Switzerland and Brazil, Brazilians tend to be happier and less suicidal than swiss according to some of the latest surveys I’ve read on The Economist.

    • jony

      You have to understand that I am doing you a favor!!!!
      I don’t want everyone here to think that you are just babbling idiot with no credential and an uncontrollable racist rage ;-)… Nobody has the right to think of you as the in-house clown around here, without getting to know all your qualifications!!! πŸ˜‰
      Now, we do know that you have a little problem with À’€œcredibilityÀ’€Â and that nothing that you say is actually verifiable because you never give as a reference or data base for your conclusionsÀ’€¦ or as I say À’€œ delusionsÀ’€Â.
      So here I am again waiting for your verifiable qualifications.
      πŸ˜‰

      sincerely,
      your only friend
      Jony

    • jony

      AND YOUR QUALIFICATIONS ARE????
      “Ch.c is not made for a diplomat ” No No… Not at all you are just a plain A.S.S H.O.L.E
      AND YOUR QUALIFICATIONS ARE?????????
      πŸ˜‰ πŸ˜‰ πŸ˜‰ πŸ˜‰ πŸ˜‰ πŸ˜‰ πŸ˜‰ πŸ˜‰ πŸ˜‰ πŸ˜‰ πŸ˜‰ πŸ˜‰ πŸ˜‰ πŸ˜‰ πŸ˜‰ πŸ˜‰ πŸ˜‰ πŸ˜‰ πŸ˜‰ πŸ˜‰ πŸ˜‰ πŸ˜‰

      You must have told me before but I keep forgeting… Your qualifications.
      I just need this information from you.
      University undergraduate
      University graduate studies
      University Pos graduate studies
      University advanced studies
      University Ph D
      Published works in economics.
      πŸ˜‰ πŸ˜‰ πŸ˜‰ πŸ˜‰ πŸ˜‰ πŸ˜‰ πŸ˜‰ πŸ˜‰ πŸ˜‰ πŸ˜‰ πŸ˜‰ πŸ˜‰ πŸ˜‰ πŸ˜‰
      Its very simple!!! Provide the above information as soon as possible!!! πŸ˜‰

    • João da Silva

      Ch.c
      [quote]Ohhh and the actual world tourism boom is by no way in Brazil or Latam but in Asia.
      The most booming one and the next gem is…..Vietnam !
      And the Vietnam government has placed tourism on their priority list.
      3 years ago I know that one of my children with 3 other partners raised US$ 2 million equity to build a 5 stars beach hotel ![/quote]

      I am aware of it,but this is the first time I am coming across someone whose son/daughter has invested in Vietnam. How friendly is the Vietnamese government towards foreign owned businesses?

    • ch.c.

      “Brazil is well-prepared if the US economy goes into recession.”
      Copacabana beach has effectively not been hit by the eventuall US recession…yet !!!!!

      But your central bank has ALREADY BEEN HIT HARD BY 70 BILLION Brazilian Real LOSS…in 2007 alone !
      Just re-read the article published here…a few days ago.

      . πŸ˜‰

      The opposite – Copacabana hit but not your central bank – would have resulted in a much much much lower loss !!!!

      And Mantega is as usual showing the rosy side of your interest rates…..hiding the much darker side :
      Brazil, despite 17 rates cuts or so….STILL HAS THE WORLD HIGHEST INTEREST RATE….after inflation.
      The after inflation rate being today at……7 % !!!!
      Just unheard of elsewhere…….otherwise you would not be the ranked the worst…..by defintion !!!!

      But of course…..Bin Lula and his 4000 thieves are proud of….being the worst on that subject !
      Just read and re- read their own self compliments.

      Better yet, Brazilians applaud ! Meaning Robin Crook and his clan…should continue in the same path !

      I am not even talking of the banks interests charged to firms and individuals…..being even far more insane than the
      government borrowing rate !

      Viva Brazil, Viva Brazilians, the society who always swallow what their corrupted and filthy government tells them….and never waked up and stand up to the much darker side hidden to them !

      So has been Brazil, so is Brazil and so Brazil will remain for the next couple of centuries.

    • ch.c.

      “Ch.c is not made for a diplomat ”
      TRUE !
      I call an apple…. an apple and not a cherry !
      I have some business and investments interets in Brazil.
      Years ago I was a frequent traveller around the world, including in Brazil.
      Now I avoid Brazil despite my investments there but have trusted foreign people caring for my/our investments.

      And I can tell you this about Brazil :
      – Elsewhere is so much better.
      Just look and compare by yourself at your very small tourism industry in such a giant country….with other
      similar countries of Your choice (are you not more objective than me ? smile) …and you wont be able to disagrre with me…and the hundreds of millions of world tourists.
      – Noooo Brazilians can even disagree with me……since YOU have a deficit…in your tourism account !
      – Your 5000 kms of beaches are not worth a fraction…of the much smaller beaches elsewhere.

      Ohhh and the actual world tourism boom is by no way in Brazil or Latam but in Asia.
      The most booming one and the next gem is…..Vietnam !
      And the Vietnam government has placed tourism on their priority list.
      3 years ago I know that one of my children with 3 other partners raised US$ 2 million equity to build a 5 stars beach hotel !
      The government provided them a US$ 3 million, 10 years loan….with a 1 % (yesss ONE %) interest rate. Where could this be done…with similar rate…in Brazil….for foreign investors ??????? Smile

    • ch.c.

      “Ch C. must be salivating from his lanlocked country” ??????
      May be not so, because in reality you have 5000 kms of UNCLEANED AND DIRTY BEACHES !!!

      On top of that, there are tens and tens of countries with more beautiful beaches than Brazil !
      Sorry for you ! Just compare the tourism industry revenues……and despite your country size, Brazil is lagging…as usual.

      As to my landlocked country…..I must laugh :
      – such a small country, 60 % mountainous, with no sea access, overall bad weather……HAS MORE TOURISM REVENUE THAN THE GIANT BRAZIL !!!!!
      Better yet…. WE HAVE the high end tourists…..YOU HAVE the low end !

      Sorry for you Joao. We do something right that you dont. Numbers speak for themselves.
      I could even add that…. on a per capita basis, we are ranked nbr 2 after Monaco…for tourism revenue.
      While Brazil would be ranked….near the queue…as usual.

      The question is not what we have but what we do with what we have.
      Have we not turned snow…into White Gold ????
      Wealthy people around the world, including Arabs curiously, just love our country and are willing to pay top prices for a secondary/third/fourth residences…HERE !
      In ski resorts…the price for a quality appartment/chalet being…OVER US$ 15000.- per square meter !
      And not uncommon to see chalets worth above US$ 10 millions and some even much more ! True !

      If you wish a lesson or two on tourism, just ask us.
      We have a multi century tradition, expertise and know how !
      So much that in fact, we also have world reknown schools to learn hospitality/catering/management of restaurants and hotels.
      You need to book 2 years in advance to participate.
      We even have such a school……only for Chinese students.

      Lets face it, we are the envy and the jealousy of the world.

      πŸ˜€ πŸ˜‰ πŸ˜€ πŸ˜‰ πŸ˜€ πŸ˜‰

    • João da Silva

      Jon
      [quote]Just looked at a copy of National Geographic Traveller magazine and it has a good article on Brazil’s 5000 miles of beach…[/quote]

      I am surprised that you came to know this fact only recently, as I always thought you have traveled to Brazil several times. Never mind. Anytime you want to come over you are most welcome. Not only the beaches, but you have to visit the Foz ( IguaΓ€Ζ’Β§u falls). You will love it.

      [quote]Ch C. must be salivating from his lanlocked country!!![/quote]

      I bet Ch.c has traveled extensively in Brasil and he knows more about the Brasilian wilderness than one gives him credit for. I hope that he pays more attention to Geopoitics than bashing the Brazilians, Brits,Serbs, etc; Sigh,sigh…. Ch.c is not made for a diplomat πŸ˜‰

    • jon

      Beach
      Joao,

      Just looked at a copy of National Geographic Traveller magazine and it has a good article on Brazil’s 5000 miles of beach….Ch C. must be salivating from his lanlocked country!!!

    • João da Silva

      Jon
      [quote]probably less US tourists and a few Spaniards hanging around the Sugar Loaf……….[/quote]

      The ones depending on tourist industries may be affected, but the residents of Copacabana, no. In our city, we have a stretch similar to Copacabana and the residents don’t even know what is recession or inflation. They are immune to such trivial things.That is the reason why I wholeheartedly agree with the minster.

    • jon

      probably less US tourists and a few Spaniards hanging around the Sugar Loaf……….

    • dnbaiacu

      U.S recession won’t reach Copacabana?
      Let’s hope not!

    • João da Silva

      Simpleton
      Gald tath yuo hda a wnodreufl tmie in cpaacabna.Aslo hpapy you rmebmred Brary
      πŸ™‚

    • Simpleton

      E eu
      But after Barry came much to remind one that one is mortal. Nao maior problemas depois de Carneval em Copacobana – had a good time. Vila Velho was busy (when it wasn’t under water), Campos, Afontona, Rio dos Ostras, Arrial do Cabos – much the same but without Favelados although there were notably fewer after the clean up raids stopped.

    • João da Silva

      [quote]US Recession Won’t Reach Copacabana Beach, Says Brazilian Minister[/quote]

      I agree with the minister. It may affect many other beaches along our coastline, but not Copacabana that was immortalized by Barry Manilow!

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