Foreigners feeling the high cost of living in Brazil

Living in another country can be the beginning of a new career, the more chances for professional development, and the opportunity to know a different culture. However, depending on destination, living in foreign cities can also be much more expensive than expected.

The appreciation of the real has made the Rio de Janeiro, for example, rise in the ranking of most expensive cities for foreigners. According to a study, the city already ranks second among the most expensive places to live in Latin America, behind only Caracas, Venezuela. According to the same study, in three years, the capital of Rio de Janeiro rose 119 positions in the global ranking, moving from 141 th place in 2008, to 22 ° in this year.

According to Roberto Simonard, professor of international economics at the College de Propaganda e Marketing (ESPM) of Rio de Janeiro, there is already a natural tendency to make everything more expensive in developing countries like Brazil. For him, a few years ago a tourist had a more favorable exchange when converting from U.S. dollars for the real. “Today, however, the tourist exchange their currency for less, which gives the impression of being more expensive to live in Brazil,” he says.

Because of high inflation, other Latin American city that was highlighted this year was Buenos Aires, Argentina. This was the place that has risen in the world ranking, up 68 positions in just one year and occupying the 95th place overall. When considering the 50 most expensive cities for foreigners, also appear in the list São Paulo in 29th place, and Brasilia, in 33rd place.

For André Roncaglia, an economics professor Brazilian School of Commerce Foundation Alvares Penteado (FECAP), no problem that the city is expensive to live as long as the income of its population is high and well distributed – which, in fact, not happens in Brazil. “The big problem in the country is the cost of products, they face two major issues: first is the low productivity of labor and the second is the very high tax burden and inefficient,” he says.

As he explains, the problem of Brazilian cities that appear in the global ranking is associated with expansionary fiscal policy of the federal government since the Lula government. He believes this is because in recent years there has been a great demand in the service sector, which had no skilled labor to meet the needs of the population. “The strong demand upon the low productivity caused the values ​​of services such as cinema, hotels and parking increase,” he says.

According Simonard, this scenario of famine in Brazil tends to scare off foreigners, but it actually does not. In this case, the biggest problem is not the rate at which prices rise, but the low exchange rate in Brazil. “At first, it removes the foreigners, because it was more expensive to come to Brazil. Still, with the country in evidence abroad, tourists come just to walk and even work here, “he says.

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Joe Cloud
Dutch, American, Brazilian... lived there for 5 years and owns property in Brazil. Out of the country for a few years now and would like to go back, however current circumstances tell me it's not the right time.

Published by Joe Cloud

Dutch, American, Brazilian... lived there for 5 years and owns property in Brazil. Out of the country for a few years now and would like to go back, however current circumstances tell me it's not the right time.