Per today's Miami Herald, there is plenty to worry about in Brazil as a result of the current "meltdown" affecting world economies, jobs and industries of all sizes and types. Check this out, based on one particular news source that keeps a close tabs on what happens in Latin America.
http://www.miamiherald.com/business/story/772086.html
Despite what Mr. Lula (Brazil's president) stated earlier about his lack of concern for the economy challenges in the USA and Europe, evidently the Brazilian consumer is showing distinctly different behavior when it comes to spending. This, in turn, like in the USA and other markets, reduces demand, curtails retail sales & purchases, which in turn leads to less jobs, less growth and other deflationary trends.
Again, to quote a number of Brazilians, they are "accustomed to these crises" so this is just one more in a string of such events. Nonetheless, the ebullience of the economy in Brazil for the past 3+ years is such that a great many more citizens in that country are now thoroughly vested in a continuation of sound economic policies, robust job markets, and moderately easy access to credit.
What happens to any economy where the "retail" consumer is responsible for a large percentage of the overall GDP, such as in the USA? How do companies and entire economies cope when that demand is reduced substantially or in some cases, eliminated, due to other economic adjustments? No company and no industry, it appears, is immune to the deflationary aspects of this downturn in demand (for more on this look at: http://online.wsj.com/article/SB122688301012632105.html )
>© Daniel A. Cabrera, TopExec.org, All rights reserved, 2008
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