The British magazine The Economist criticized again the Brazilian economy. In an article published on Thursday, the magazine said that Brazil’s economy is “disappointing” and that the country “is stuck in the mud.” The magazine also noted that the Brazilian GDP grew only 0.6% in the first quarter of the year, the magazine states that “for the first time in many years the country has a trade deficit.”
Rising dollar against the real
“The currency exchange rate is not good to us and cause momentary concern”, said the president of Petrobras, Maria Graça Foster, during an event in Rio de Janeiro. The executive said that 78% of company’s debt is pegged to the dollar, as well as most of the costs of the divisions of Exploration & Production and Gas and Energy. Furthermore, for a company that has made major imports of oil, the costs are higher with a fragile real.
The dollar hit on Friday R$ 2.13, well above the expected average of R$ 1.85. The dollar rose 7% in May compared to the Real.
Everything is bad and getting worse
The minimum salary of Brazilian workers should have been R$ 2,873.56 in May. That is the amount that would supply brazilians basic needs, according to a study released on Friday, 7 by the Department of Statistics and Socioeconomic Studies (Dieese). The finding was made by means of the numbers from the National Survey of Basic Needs of last month, held by the institution in 18 cities of the country.
Based on the highest value of the basic needs items in the period, R$ 342.05 in São Paulo, and taking into account the constitutional provision which states that the minimum wage should be sufficient to ensure household expenditures on food, housing, health, transportation, education, clothing, hygiene, recreation and welfare, Dieese calculated that the minimum should have been 4.24 times higher than what it currently is in Brazil, R$ 678.00. Yep, about 300 dollars is what most brazilians make in a month!