In Brazil They’re Sure They Hit Bottom. The Only Way Is Up Now

A pothole in Brazil In Brazil and Latin America the business climate experienced a slight improvement in the last three months having jumped from 2.9 points in January to 3.6 in April, although it is still one of the worst levels in seven years, reported the Brazilian Foundation Getulio Vargas

The Economic Climate Index, which is jointly elaborated with Germany's Munich University Economics Research Institute, ICE, is still far from the 4.6 of July 2008, before the global crisis.

"The economic climate in Latin America continues to be recessive at the start of the second quarter, but the expectations improvement from January to April, the highest point and a dividing line between pessimism and optimism, is a signal that the region is heading for recovery", indicates the report.

The index initially dropped to 3.4 points last October and to 2.9 in January its lowest ever, but in April experienced a slight recovery equal to the points of January 2002 (3.6), the worst before the current crisis.

According to the report, for most experts consulted "April marked the bottom of the fall with expectations of a more favourable scenario in the near future".

A total of 136 experts from 16 countries were polled for the report.

The economic climate index is made up of the Current Situation index and the Expectations Index, which measures prospects for the coming six months.

While for Latin America the current situation index dropped from 3.4 points to 2.5 in April, expectations soared from 2.3 to 4.6 in April.

The current situation index was not so low since October 2001 (3.1) while the expectations index was not as high since October 2007 (4.7). According to the Getulio Vargas Foundation Latin America follows the global tendency since the expectations index climbed from 2.8 in January to 3.6 in April based on a more optimistic outlook.

With the exception of Argentina, Bolivia, Uruguay and Venezuela the economic climate index improved in the rest of the hemisphere, however "they all continue in a zone considered unsatisfactory or bad".

The country with the most positive rating was Peru, with the index climbing from 4.4.in January to 5 points in April, followed by Brazil, 3.9 to 4.6; Chile, 3.8 to 4.3; Paraguay, 2.3 to 3.7 and Mexico, 2.3 to 3.7. Colombia was also positive from 2.9 to 3.2 and Ecuador from 2.4 to 2.6.

But in Uruguay the index plummeted from 4.4 points in January to 3.3 in April. The other countries falling back are Bolivia, 3 to 2.4; Argentina, 2.5 to 2 and Venezuela, 1.9 to 1.6.

The expectations index improved in all countries with the exception of Uruguay, where it dropped from 1.7 to 1 and in Venezuela, 1.9 to 1.6. However the current situation index worsened for all the region's countries with the exception of Ecuador that went up from 2 to 2.3 points.

Mercopress

Tags:

  • Show Comments (1)

  • sadface

    πŸ˜₯ it’s sad, but probably it’s not the bottom yet… there are many things that are beneath the statistics (like workers made to take an unpaid leave) and will come out eventually.

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

Caribbean Mission Learns from Brazil about AIDS

Representatives of the Caribbean Community and Common Market (Caricom) are in Brazil on a ...

Lula in a rally in Brazil

Brazil Lula’s Ides of March

The ashes were still being washed from the streets that staged the Rio de ...

Drought and Low Price Batter Brazil’s Grain Crop

This year’s Brazilian grain crop is expected to attain 113.468 million tons, 4.94% less ...

Vote no campaign in Brazilian referendum on banning guns

US Gun Lovers and Haters Watch Closely Brazil Referendum on Guns

This Sunday, Brazil, the 186 million-person country will become the first in the world ...

Brazil’s Gol Is 50, 50 Jets Strong That Is

The Brazilian airline company Gol added the 49th and 50th aircrafts to their fleet, ...

Bulls Continue on the Loose in Brazil

Brazilian shares continued to roar higher on bullish sentiment, while profit-taking took a hold ...

Ethanol and gasoline station in Brazil

Brazil’s Ethanol to Quench 10% of World’s Thirst for Gasoline

Brazil, India, China, the United States and the European Union have created a forum ...

Brazil’s Odebrecht Gathers People from 31 Countries for Its Libyan Project

Brazilian contractor Odebrecht, aside from know-how, material, equipment, and machinery, had to bring to ...

Making a Difference

Sponsoring a youngster from a third-world country like Brazil promises to be an ongoing ...

Obama’s Professor and Brazil Minister to Discuss in Moscow a Substitute for Dollar

According to Brazil's Strategic Affairs minister, Roberto Mangabeira Unger, Mercosur is currently a "body ...