Home' Trinidad and Tobago Guardian : December 5th 2013 Contents BG14 | REGIONAL
BUSINESS GUARDIAN www.guardian.co.tt DECEMBER 2013 • WEEK ONE
Brazil's economy fell into contraction in
the third quarter, with output shrinking
by more than analysts had forecast, accord-
ing to official state figures.
The Instituto Brasileiro de Geografia e
Estatistica (IBGE) said that Brazil's economy
shrank by 0.5 per cent in the quarter, com-
pared to the previous one.
Analysts had expected Brazil's economy
to shrink by just 0.2 per cent.
However, compared with the same quar-
ter last year, the economy grew 2.2 per
The drop was mainly due to the per-
formance of its agricultural industry, which
shrank 3.5 per cent between July and Sep-
tember compared with the previous three
The fall came after a strong second quar-
ter, reflecting the main harvesting period.
Investment also fell, dropping by 2.2 per
Public spending was one bright spot,
growing 1.2 per cent in the period, but
public officials have warned there is no
room for more stimulus.
Economists said they planned to down-
grade their forecasts for Latin America's
largest economy following the official data.
Andre Perfeito, chief economist at Grad-
ual Investimentos, said he would lower his
projections for next year to 2.4 per cent
or 2.5 per cent from 2.7 per cent.
Similarly, Flavio Serrano, an economist
at Espirito Santo investment bank, said he
now expected growth for the full year to
be closer to 2.2 per cent or 2.3 per cent
than the 2.5 per cent he had previously
"It shows that we were not able to grow
despite various economic stimulus meas-
ures," he added.
The Brazilian economy grew 1.8 per cent
in the second quarter over the previous
one, exceeding market expectations.
However, on an annual basis, growth has
slowed. Last year, it posted only 0.9 per
cent growth after 2.7 per cent in 2011 and
7.5 per cent in 2010.
Last week, Brazil's central bank raised
its benchmark interest rate to ten per cent
from 9.5 per cent, the sixth time in a row
that it had put up borrowing costs.
The latest rise, which took the key rate
to the highest level since March 2012, came
as part of efforts to curb persistently high
inflation. Consumer prices in the country
rose by 5.8 per cent in October from a year
earlier, above policymakers' 4.5 per cent
Brazil's economy shrinks 0.5% in 3Q
British luxury car builder Jaguar Land Rover is
about to invest about US$436.9 million on a new
manufacturing plant in Brazil's Rio de Janeiro state,
three government sources told Reuters on November
25.Production at the factory, to be built in the city
of Itatiaia, could begin as early as 2015, and an official
announcement is scheduled for December 3, said
one of the sources, who is not authorised to speak
on the record.
"Everything is very advanced with only minor
details to be worked out," said Luiz Carlos Ferreira
Bastos, Itatiaia's mayor.
The factory could employ 500 to 700 people, he
The two other government sources, both with Rio
de Janeiro's state government, confirmed that Land
Rover plans to build in Itatiaia, although they declined
to be named because they are not authorised to speak
to the media.
Earlier this month, Jaguar Land Rover, owned by
India's Tata Motors Ltd, said it plans to expand man-
ufacturing and increase production in markets outside
Britain, particularly in China and Brazil.
The decision comes after rivals BMW AG, Daimler
AG-owned Mercedes-Benz and Volkswagen AG unit
Audi all decided to build plants in Brazil, spurred by
government moves to raise taxes on imported vehicles,
while offering tax breaks for carmakers that increase
"Jaguar Land Rover confirms that it is carrying
out a study on the installation of a manufacturing
unit in the country," a representative of the company
told Reuters in an emailed statement on Monday. "At
this time, we cannot confirm the size of the investment
or other details of the study."
Negotiations started at the beginning of this year,
one of the sources said, with Rio de Janeiro's state
government offering tax breaks and fiscal incentives
to help attract the company, known for its sporty
From January through October, Land Rover sold
8,920 automobiles in Brazil, trailing BMW and Mer-
cedes-Benz, which sold 11,520 and 10,510 cars, respec-
tively, according to local auto dealers association
Jaguar Land Rover
The European Commission (EC) is urging
European countries to impose trade sanction
on Belize over illegal fishing, while warning
Curacao that it may be next.
The EC also urged European Union gov-
ernments to hit Cambodia and Guinea with
the sanctions, cautioning South Korea and
Ghana that they, too, may be next in line.
The EU executive called for action against
Belize, noting that no "credible progress" has
been made since hitting it with the so-called
"yellow cards" last year.
"Once placed on an official list of "non-
cooperating countries" in the fight against
illegal fishing, related products from those ter-
ritories will find themselves all-but shut out
of the EU market of half a billion consumers,"
the EU said in a statement.
The Commission also flagged up a new
round of "yellow cards", which puts key free-
trade partner Curacao under mounting pressure
to meet international obligations.
"West Africa was identified as a major source
of illegal fishing, and my intention is now take
the same thorough approach in the Pacific,"
said EU Commissioner for Maritime Affairs
and Fisheries, Maria Damanaki.
Damanaki told reporters here that, for South
Korea, Ghana and Curacao, "this is not about
EU legislation, we are implementing interna-
"We are very much willing to give them
more time," she said, adding that the "right
to fish as they want" had to be set against the
EU's "right to protect consumers".
The EU said at least 15 per cent of all landings
around the world were done illegally, between
11 and 16 million tonnes each year, with inter-
national rules agreed in 2001 routinely flout-
ed.It said five countries made "sufficient
progress" this year to avoid being expelled
from EU markets at least until March next
year: Fiji, Panama, Sri Lanka, Togo and Van-
The EU said it imports 65 per cent of its
Campaigners Greenpeace said the decisions
announced would "motivate all six countries
to improve fisheries management and help
create a better future for their seas and fish-
EU warns Belize, Curacao
about fishing sanctions
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