Money February 26, 2018

How inflation impacts Brazilians according to income

inflation rate brazil income

Though it may seem like a statement from Captain Obvious, inflation rates impact rich and poor Brazilians in different ways. And while logic would suggest that poorer populations are more vulnerable to price hikes, in this particular instance, it’s wrong. For the past 12 months, inflation rates have been higher for richer Brazilians when compared… Read More »

Oil boom could help Rio’s economy emerge from the recession

petrobras oil boom rio de janeiro

For years now, Rio de Janeiro has been the textbook example of the financial crises facing Brazilian states. Just weeks before the Rio Olympic Games in 2016, the state declared “public calamity” – just one step away from bankruptcy. Rio’s financial collapse has led to not only public safety crises, but also protests from public… Read More »

As science stalls in Brazil, the economy shows signs of the strain

science brazil economy

While many of Rio de Janeiro’s samba schools have chosen direct attacks on politicians in this year’s carnival, one school has picked a topic whose tensions simmer beneath the surface. Unidos da Vila Isabel’s entry, sponsored by Nissan, saw elaborate tributes to inventors like Albert Einstein, Santos Dumont, Alexander Graham Bell and Thomas Edison sashay… Read More »

Petrobras tries to move on from its troubled past

petrobras pasadena

On Tuesday, Petrobras announced its intentions to sell its oil refinery plant in Pasadena, Texas. The plant is a prime example of how corruption and poor administration have resulted in the near ruin of Brazil’s giant state-owned oil and gas company. In 2016, Petrobras closed a $360 million deal to purchase 50 percent of the… Read More »

What to make of Brazil’s 124bn BRL primary deficit

brazil inflation rate primary deficit central bank

This week, Brazil’s federal government published its primary results for 2017: a deficit of 124.4 billion BRL. This number doesn’t take into account payments with the country’s public debt. Which means that even before paying back its creditors, Brazil has spent more – far more – than its revenue. The government, however, was quick to… Read More »

Brazil is getting old. Fast

brazil getting old pension system

Since taking office nearly two years ago, President Michel Temer has made the pension system reform the center of his economic agenda. To push for the major overhaul of Brazil’s uber-expensive social security system, the government has tried nearly everything. And that includes pouring millions into advertising campaigns to increase public acceptance of his agenda,… Read More »

Brazil’s big banks rattled by fintech competition

fintech bank concentration

Four banks dominate Brazil: Banco do Brasil, Bradesco, Caixa Econômica Federal and Itaú hold 73 percent of all active accounts and 80 percent of the country’s credit. For every 10 BRL deposited in the country, 7.67 BRL will end up in accounts held at one of these four. Even Brazil’s deepest recession has benefitted them,… Read More »

Brazilians cautiously optimistic about 2018’s economy

Brazilians are cautiously optimistic about 2018’s economy

While many Brazilians voiced their intentions to save money in 2018, they largely showed optimism when it came to the economy’s trajectory this year. The annual research study, from Brazil’s Credit Protection Service (SPC), shows that Brazilians are slightly more positive about the prospects for the coming year when compared to recent years. Many also… Read More »