Posts tagged w/ crisis

Brazil’s Lula Announces Anti-Crisis Plan

Posted by Rachel
Mar
26
2009

Brazil’s President Lula announced an ambitious plan this week to stimulate the economy and to ward off the global crisis. The plan is to invest R$34 billion (US$15.1 billion) into constructing homes for working class families.

The plan also aims to create 1.5 million jobs and to increase the country’s growth rate. However, 6.5 billion reais will be taken away from other government programs, which the administration has not named. The plan comes as a response to rising unemployment rates, a falling GDP, and predictions of an overall shrinking economy.

Families who make less than R$1,395 per month will be eligible to buy their own houses with payments as minimal as R$50 per month. Families who make less than R$2,790 per month will be able to receive subsidies for their homes. The plan calls for a million homes to be built, with the help of construction companies Gafisa and Tenda.

Lula’s popularity has been affected by the crisis, and the economy has had a large impact on Brazilian politics in the last few months.

 
Posted under Brazilian News, Economy
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Economic Crisis Hits Rio Carnival

Posted by Rachel
Jan
28
2009

The global economic crisis has begun to affect Brazil, with mass lay-offs and budget cuts. The latest victim of the crisis is Rio de Janeiro’s world famous Carnival celebration.

First, price increases are hitting the samba schools hard. Materials used to create costumes and floats have are now much more expensive after a 7% increase in the price of steel and a 30% increase in the price of imported fabric.

Next, Petrobras, the state-owned oil company, usually donates US$5.1 million to the Rio samba school league. This year, the donation isn’t happening. One samba school, Grande Rio, managed to get a US$2.2 million donation from the French city of Niza, since its theme this year is about France. The city of Rio donated US$1.7 million, which was delayed, and the Rio state government will donate approximately $2 million to each samba school.

Also, Carnival is a time when people dress up in costumes, like on Halloween. One of Rio’s major costume supply stores, Casa Pinto, experienced a 15% decrease in sales this year, along with price increases for materials for costumes. Also, carnival mask producers experienced a drop in export sales, from 30,000 masks last year to just 5,000 this year.

Finally, Carnival is high tourist season in Rio when hotels fill to maximum capacity. But this year, hotels expect a 20% drop in hotel occupation during Carnival.

 
Posted under Economy
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