Santos a Microcosm of What Went Wrong in Brazil
Post on August 12, 2015, 3:00 pm by the-victoria-law-group 7 Comments
Santos has been known for more than just Pele in Brazil. Santos Port has also been known as Brazil’s gateway to the world. Now, it’s a window into what went wrong in Latin America’s biggest economy.
Exports from Santos have tumbled as demand from China sags. Companies betting on a boon as massive offshore oil finds were developed are now scaling back after PetroleoBrasileiro SA said it will cut investments by a third. And real-estate prices are falling as entire buildings stand vacant.
Nowhere, perhaps, are Brazil’s unfulfilled promises as a would be superpower more apparent than Santos, Latin America’s busiest port.
About an hour outside of Sao Paulo, Santos benefited from the dual boon of the commodities supercycle and the government spending spree it afforded. Now, it’s feeling the double blow of a corruption scandal at Petrobras and Brazil’s worst recession in a quarter century.
Not even the study supply of great soccer talent can save Santos.
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