Brazil Fights Their Way Out of Recession

Posted on December 23, 2017 By

If you have been following economic news in Brazil, you’re probably aware that the country has experienced their fair share of economic turmoil, which began in 2015, as the country fell into their worst, recorded recession. At it’s lowest point, Brazil experienced unemployment rates as high as 12 percent, which many have attributed to the country’s fallen commodity prices, political unrest, and diminished investor confidence. As of the first quarter of 2017, however, Brazil seems to be poised for an economic rebound; the country has reportedly seen a one-percent increase in their gross domestic product, suggesting that country is regaining its economic footing.

So, what does the future hold for Brazil? Well, according to Business Insider, business confidence is on the rise; in fact, as of October, the country’s business confidence index rose from 95.4 to 98.1. Additionally, Brazil’s expectation index saw an increase, rising from 95.2 to 99, as of October. These are all promising signs for a country that has endured over 2-years of negative growth; although Brazil is by no means completely out its recession, their economy is definitely moving in the right direction.


Brazil is also experiencing a demand for their commodities again, which include metals, oil, soy, coffee, and sugar. Many have attributed this renewed demand to the country’s monthly inflation rate, suggesting stability within the economy. Additionally, Brazil has seen a decrease in interest rates, which many speculate could spur investment and help guide the country completely out of recession.

Although the country’s economic progress seems to be slow, it is steady, and the future looks very bright for Brazil, which was at one time ranked as one of the fastest growing economies. In fact, the country has seen a 1-percent increase in their gross domestic product, which is a denotation of their total value of goods and services provided for the year.

The Brazilian economy, for now, could be looked upon as a work in progress, but if the country continues to make strides towards rebounding, it won’t be long before they regain the distinction of being one of the fastest growing economies in the world.


Investing In Your FutureInvestment BankingInvestor