Be carefull in 2013!

I spent most part of my life as an executive of multinational corporations trying to explain this strange country called Brazil. Studies upon studies, conversations with renowned economists, study groups, but nothing that could explain the high inflation, the various economic plans, government interventions in the market, the lack of visibility in the medium and long term, and so on and so . 
I am not an economist, but I recognize that the country has changed in the positive way in the last years, was even worthy of a story where there was on the cover of The Economist, Christ the Redeemer taking off! For me, it was much more a marketing process than a real economic truth, and make more sense when last week, the managing director of the IMF, Christine Lagarde expressed concern with Brazil's economic forecast, GDP growth in 2013 of 3.5%, how? 
Brazil's growth after 2004 was based on the expansion of domestic demand by the consumer market, and demand for basic raw materials for the international market. This expansion was supported by existing idle production resources and the manpower available, no significant investment in infrastructure that could support a long-term sustainable growth was done. 
Consider the following: decisions made to encouraging the market was through trial and error, IPI reduction, exemption of labor tax and contributions for some sectors, increasing the exchange rate of U.S. dollar to the level of $ 2.00,  and that is it. Based on this background, how could we expected any GDP growth in 2012? and how really do we expect GDP growth of 3.5% for 2013? It doesn't make sense for me. 
In my work as a consultant I see an industry being destroyed, not that the entrepreneur has not his part of this movement, he did not do his homework. But when a country allows apparel products to reach the market 40% cheaper than domestically produced he is sending a clear message that this sector is not a priority for the government. The dressmakers will lose their jobs for imported goods. The worst is that be a dressmaker is the only way to have a decent job, the most part of them works at home, living in a suburb, with very low government support.
 

The graphic sector for printing book  is another one heavily affected by government inertia. Even the public school textbooks are being produced in the Asian market, so, it is another market into extinction, and other industries sector will be in the same way.Another interesting point is that the unemployment rate was close to 4.6% in last December, and it means a full employment level, and it is positive news, however, due of the lack of education investment, there is no manpower avaliable restricting the expansion of business, so how the GDP will grow?
 

Inflation, low interest rates, exchange rate control and lack of infraestrucuture investment is against our needs for long-term growth, but I will leave this analysis for the economists,  
In my point of view, this 2013 GDP growth is totally dependent on what happens in the international market, than in what happens domestically, but the news from European countries and from the United States are not the best.

At this point, my adviser for businessmen, entrepreneurs, investors, and everyone in general, is to look inside the organization, look to be more efficient, innovative and have strong  cashflow control. 
A happy 2013 to everyone!

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