Unemployment rate falls for the second month in a row to the lowest so far in 2013

Having started off at 5.4% in January 2013 this year, and risen steadily until it reached 6.0% in June 2013, the unemployment rate for the six principal metropolitan regions of Brazil fell to 5.6% in July and again to 5.3% in August according to the Instituto Brasileiro de Geografia e Estatística (IBGE).

The data for the PME (unemployment rate) is obtained from a probability sample of, approximately, 38,500 households located in the Metropolitan Areas of Recife, Salvador, Belo Horizonte, Rio de Janeiro, São Paulo and Porto Alegre.

Goiânia (Santa Genoveva) Airport work resumes on tripling capacity by 2020

Having got off to a false start amidst accusations of public money being filtered away from the intended destination, work resumed at Goiânia (Santa Genoveva) airport last Wednesday 18th September 2013 to conclude the first stage of the new passenger terminal.

The agreed date for completion is in March 2015 (18 months from now) and the work will cost R$246.2 million, around £69 million.

The governor of the state of Goiás, Marconi Perillo personally thanked Brazil’s president Dilma Rousseff for supporting the state’s petition to central government for funding to complete the works. The prefect of Goiânia (the city’s local government chief official) confirmed that the new airport will benefit the various sectors of the economy in the capital (Goiânia) and the entire state of Goiás.

The current capacity of the airport is 3.5 million passengers p.a.. This will increase in 2015 by 5.1 million to 8.6 million a huge increase of nearly 150%. The second stage (2020) will result in capacity increasing further to 10.6 million. The first stage of the new terminal will provide 34,100 sq m of space, dwarfing the present terminal which is 7,571 sq m.

The scene is being set for Goiânia to become increasingly easily connected with other parts of Brazil and, as a result, economic growth which may bring with it increased demand for real estate. There have been rumours over the years of international flights landing in Goiânia and time will tell.

To put it in context, Luton Airport in 2012 had a capacity of 10 million passengers p.a., although according to the FT, the new Spanish owners Aena plan to increase this to 18 million p.a..

Summary statistics (source: Infrero)

How Goiania airport will change over the next few years

How Goiania airport will change over the next few years

The fall in the value of the Real has influenced how Brazilians travel within Brazil

As the value of the Real has fallen against world currencies, particularly the US$, the cost of flights has gone up. As a consequence the Brazilian air travel market is suffering – this year more than 10% fewer flights are being taken by Brazilians – while the long distance bus companies are experiencing a mini boom: the number of long distance bus journeys this year is expected to increase by over 10% compared to 2012.

Brazil 2013 inflation and growth expectations on the rise, but slower growth anticipated for 2014

According to the Banco Central do Brazil’s latest economic forecasts, inflation is expected to be 5.83% in 2013 (market consensus) – average expectations were at 5.75%  a month ago.  A similar level of inflation is expected in 2014.

GDP growth (PIB) is expected to be 2.32% in 2013, up from 2.24% a month ago.

Expectations for economic growth in 2014 are on the decline – the average is currently 2.30% compared to 2.60% a month ago.