The reported numbers are from a story authored by Christiana Sciaudone
August 17, 2015
“In the midst of its deepest economic and political crisis in a generation, Brazil is contending with a business climate so punishing that major projects across numerous sectors are being frozen or shrunk, while small businesses slash prices and shift focus.”
“Political instability is enormous, and it’s paralyzing Brazil,” said Eduardo Fischer, co-chief executive officer at homebuilder MRV Engenharia & Participacoes SA, in an Aug. 5 interview.
In Brasilia, the nation’s capital, “decisions and actions that need to be taken are being delayed, questioned or defeated, and nothing happens.”
Multiple economists are predicting that the Brazil economy will contract about 2 percent this year,.
National unemployment is at a five-year high.
Brazil’s real is the worst-performing major currency in the world this year.
The airline has seen corporate demand drop by as much as 40 percent.
Embraer, the best-selling regional jet aircraft manufacturer had been counting on new products to boost revenue… … and is also awaiting payment of $370 million… Its production of new models can be expected to see a year long delay… or longer.
Brazil’s auto manufactures also have watched demand plummet, with sales down 20 percent in the first half of this year compared with the same period in 2014…
Both GM and Volkswagen AG are temporarily shuttering local factories and putting workers on leave.
Long ago announced new Brazilian railway projects… …can expect more delay and uncertainty in this economic climate.
So far, the recently announced BRICS new development bank is offering no solutions. And a once promised Brazilian foreign aid to Ethiopia railways looks to be unofficially “unlikely”.
Much of this was predictable if proper due diligence has occurred during the many project reviews. The signs of risks were there.
For a full report — log onto http://www.bloomberg.com/news/articles/2015-08-18/from-planes-to-cafes-brazil-s-economy-on-hold-as-crisis-deepens