Want to know more about Brazil’s economy? Read the article to learn how Brazil’s economic development has changed since 2003. Investing in Brazil is still an interesting choice, and with GM Venture, it is even easier.
Economic Development of Brazil: from 2003 to 2017
From 2003 to 2017, Brazil’s economic development was marked by a severe recession, after a cycle of significant economic growth. The following graph shows GDP growth rates from 2003 to 2017.
GDP growth rate – 2003-2017
Source: BNDES, based on data from IBGE – Quarterly National Accounts.
In general, as can be seen from the data presented in the chart, it is possible to identify three distinct periods, in addition to the year 2017, that marks the beginning of recovery. In the first period, between 2003 and 2008, there was a very satisfactory growth, with the average rate at 4.2% per annum.
Between 2009 and 2014, there was still an increase in GDP, but with a decisive slowdown in the pace. 2010 was the year of recovery after the international crisis of 2009. The average growth over the period was already much lower, about 2.8% per annum.
The two years 2015-2016 was marked by a severe recession, accumulating a loss of more than 7% for GDP and 8% for GDP per capita. The deterioration of political and economic scenarios has produced one of the recessions in Brazilian economic history. In annual terms, the setbacks were 3.5%, for both 2015 and 2016.
In 2017, the Brazilian economy finally held back the decline in GDP. Growth was 1%, up in all quarters during the year. A number of factors have contributed to this result: first of all, the increasingly expansive monetary policy, the extremely positive agricultural harvest and also a favourable international environment, as well as the confidence of the agents in the economic policy implemented by the new government. Investing in Brazil has been on the international investor’s radar.
Brazil’s Economic Development: Today
The year 2017 was the beginning of the real recovery for the Brazilian economy, especially after the severe recession that characterized the two years 2015-2016. Thanks to the performance of household consumption, GDP grew by 1%.
In 2018, GDP growth was 1.1%, it was not among the expectations of 2017, but the figure is that it remained unchanged according to the recorded in 2017. The low performance certainly depends on the strike of the truckers, the political and electoral uncertainties and the worsening of the international scenario.
GDP remained stable at 1.1% in 2019, because of the loss of pace of household consumption and private investment. The result somewhat, disappointed the market, even that they were positive for three years. Also, unemployment has fallen, rates have reached lows, and inflation has also remained low.
For 2020, the Ministry of Economy, through a bulletin, forecasts economic growth of 2.1%, while for 2021 it expects growth to continue by 2.5%. But the new scenarios related to the COVID-19 are rapidly changing the global economic picture.
If you’re looking to invest in Brazil, a local expert like GM Venture can help you and offer you full investment support.