Original article in MarketWatch
“Over the past few quarters in Brazil, we have seen the emergence of a two-speed economy, with manufacturers, agricultural goods, and industrials suffering from a decline in external demand and increased internal competition from exports,” said Clinton Carter, director for Latin America at Frontier Strategy Group. Even so, “both employment and wages have remained high, so consumer sectors have performed relatively well. he said.
Now, “we see a slightly improved outlook for capital intensive industries, as the cost of capital has fallen with recent interest rate cuts, and a cheaper local currency has improved the competitiveness of domestic manufacturers in the short-run,” he said.
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