Brazil, companies to a new start

Alessandro_PasutBrazilian companies to a new start

The Chairman of BRF, Mr. Abílio Diniz, thinks that the Brasilian companies after years of bad figures will have a new start.
First, he points that the real has strengthened by a third against the dollar since January 2016.
The second point is that in August the impeachment of Dilma Roussef ended months of uncertainty and the actual government looks more fiscally responsible than its predecessor, and more responsive to businesses’ concerns.
A promise of fiscal rectitude has helped dampen inflation expectations, allowing the central bank to cut interest rates for the first time in four years on October 19th, from 14.25% to 14%.
On the other side, Mr. Carlos de Freitas of the National Confederation of Commerce, a lobby group, notes that the real economy does not live on expectations alone and that Brazil needs also to tackle assorted structural deficiencies especially within the fields of costly credit, unskilled workers, convoluted taxes, rigid labor laws and bureaucracy.
For decades, fixing these gripes has eluded even popular presidents.
Some bosses believe that the actual government stick with emergency fiscal measures and leave deeper reforms to his successor. Many would be content with stop-gaps: a law to make outsourcing easier, say, rather than an overhaul of the sacrosanct labor code dating back to 1943.

(Source: The Economist)

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