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Economic indicators

Consumption in Brazil is at its limit, says expert

15/10/2012

This article was translated by an automatic translation system, and was therefore not reviewed by people.

 

 




For expert, default of Brazilians is the most worrisome when it comes to consumption, which is being encouraged by the government erroneously
 
SAO PAULO - In recent months much has criticized the government's attitude regarding the stimuli adopted to beat the growth of the Brazilian economy, which according to the latest bulletin Focus was estimated at 1.57% for 2012. The IMF (International Monetary Fund) is even more discredited and estimates that the domestic product (GDP Bruno) this year in Brazil reach only 1.5% growth.

Professor of Economics at Santa Marcelina College, Reginaldo Gonçalves, is one of the critics of government policy to stimulate consumption and, consequently, economic growth. For him, the reduction of interest not freak out more positive effect due to the degree of default that Brazilian consumers are.

A major concern is with the default as the excessive credit supply over increasing values of debts of the population, "said Goncalves. Reduction IPI credit for appliances, automobiles, and other goods has decreased reserves consumer account the teacher. "Now the population has more resources to cope with basic and essential spending such as health, nutrition and education," he says.

Some of the possible solutions would be to increase the exemption from payroll and keep the tax cuts, both for companies and for consumers, because the productivity of the industry would be better and the consumer's income would be spared. Gonçalves says the oversupply of credit can lead to create a "credit bubble", shouldering crippling consumers with so much debt and points out that the problem of indebtedness in Brazil involves the consumption of simple account that the higher default rates, lower is the purchasing power of the population. "

Selic and Inflation
The estimate of inflation, as measured by the IPCA (Broad National Consumer Price Large) for accumulated this year is 5.36%, ie higher than the target (4.5%), while not exceeding the ceiling 6.5% government tax.

Gonçalves says that inflation may be limiting the fall of the Selic rate, which fell by 0.25%, from 7.5% to 7.25%, as the release of the Monetary Policy Committee (Monetary Policy Committee).
The professor also believes that inflation could be even more pressed to account for elevations export incentives, which have as a major depreciation of the real impulses.



Source: Infomoney

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This article was translated by an automatic translation system, and was therefore not reviewed by people.

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