A BBC news story today seems to confirm my worst fears about Brazil's future prospects as more than just China's b...., a source of commodities for China. This unbalanced new relationship is wreaking havoc on Brazil's other, non-commodity exports. Given Brazil's deep structural weaknesses, it doesn't bode well for the future. Key quotes:
"There's a clear processes [sic] of deindustrialisation happening in Brazil ... It's expected that in developed economies the services sector takes space from the industries, as it has happened in Europe, but here in Brazil we are at an early stage of our development for this to happen ... We have deficient infra-structure, an inefficient tax-system and high labour costs. Independently from what China is doing, producing in Brazil is very expensive."
"There's a clear processes [sic] of deindustrialisation happening in Brazil ... It's expected that in developed economies the services sector takes space from the industries, as it has happened in Europe, but here in Brazil we are at an early stage of our development for this to happen ... We have deficient infra-structure, an inefficient tax-system and high labour costs. Independently from what China is doing, producing in Brazil is very expensive."
No comments:
Post a Comment